Why Buy Now?

It's the big question that potential buyers across the country are asking themselves - is now the time to buy? Of course, the answer is not cut-and-dried by any means. But many industry experts say - Yes, now is a very good time to purchase, if you want to buy a home to be a home, and not purely an investment opportunity. That's because it may take several years for real estate to be on the upswing again. And in order to see a profit on its future sale, values need to go back up. So, buyers who are in it for the long-haul are in a good position to take advantage of the current housing market.

Not only are prices lower in most parts of the U.S. (Chicago is somewhat of an exception because median home values have held in a number of neighborhoods), but average mortgage rates have dropped nationwide and the first-time home buyers income tax credit is still available. These factors are making homes more affordable for Americans right now. Borrowers have the opportunity to lock in at near-record-low loan rates (hovering just over 5% in January). And the vast amount of inventory means house hunters can pretty much find what they want without having to compromise too much. Make note: the $7,500 tax credit, which is a dollar-for-dollar reduction on income taxes, is set to end on July 1st. Eligible buyers closing after that date will not be able to use the benefit, although there are initiatives to make the credit permanent and eliminate the repayment terms that say the amount must be paid back over 15 years, interest-free.

This can be an excellent time to get the home of your dreams for a good price. But buyers must assess their own situation and make decisions based on personal circumstances and capabilities, not just market conditions.

Learn more about Buying Now! Contact a real estate agent here.