Is Now the Right Time to Buy? The Factors you need to Consider to Know for Sure
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We’ve all heard the saying, “timing is everything.” While timing may not be everything, it clearly plays an important role in the results of your investment decisions. Buying a home can be the single largest financial purchase in a person’s life. Therefore, as a prospective home buyer, whether it’s your first property or your fifth, here are some criteria to consider in deciding if the right time to buy for you is now.
Some key strategic figures to look at when buying a property in your area are the total number of sales in the area, home sale prices in the area and mortgage rates. It is also important to understand relevant buyer incentives, especially for first time buyers.
Looking at current market trends and understanding the direction the market is headed is the first step to understanding whether it’s the right time to buy. A professional real estate agent will be pivotal part of this step offering accurate information relative to your market. Recent Figures have shown the average home price in major metropolitan markets are starting to increase, including San Diego, which has risen 1.3 percent over the past year. This small increase in property value points to a healthier market with opportunity for further growth.
Scott Peck, Windermere Exclusive Properties Solana Beach stated, “In my professional opinion we have hit the market bottom and it has been really exciting watching buyers come out of hiding. A number of our listed properties are in escrow and a few of them have seen multiple bids. North County home prices have risen slightly and the selling price for homes listed below $800 thousand has gone up. This really is a great time to find the right property for you.”
National reports have shown that home sales have increased for the last seven months. Regionally the largest increase was seen in the west, up 16 percent. One reason home sales have increased over the past year is mortgage rates. Mortgage rates have seen record lows this year and have remained low to date. As of October 15th, fixed thirty year rates averaged 5 percent and fifteen year rates came in at 4.4 percent.
Another reason home sales have increased is the American Recovery and Reinvestment Act of 2009, which awards first-time home buyers with a tax credit of $8,000. What many potential buyers don’t realize is that the deadline on this tax credit is November 30, 2009 leaving less than a month to purchase your property and receive those government financial incentives.
“The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex appraisal rules. No doubt many first time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month (November 30, 2009),” said Lawrence Yun, Chief Economist to the National Association of Realtors.
With the deadline quickly approaching many first-time buyers are beginning to get in at the ground floor. That isn’t however a reason to rush into buying a property you may not love. It is expected that a vote will take place in the next week to extend the deadline through June 30, 2010. After two weeks of delay, the Senate Monday night cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. The first-time homebuyer tax credit, due to expire in 27 days, would be extended through June 30 of next year. However, at this point no extension is set in stone.
At this point my advice to all interested buyers, whether you’re a first time buyer or not, begin working with a real estate agent towards understanding current market trends and take advantage of the low mortgage rates and the incentives that come along with owning property. At the end of the day a professional real estate agent is there to help you understand the process of buying a home and is there to help you achieve the American Dream of home ownership.
