Should I Buy?

If you are a ready, willing, and able buyer, now is the time to consider buying a home. Everyone is waiting for "the bottom". But how will you know when the market has reached the bottom? When it goes up, that's when! Then it may be too late to negotiate the best deal.

Historically Low Rates

Interest rates on long-term, fixed, and adjustable mortgages are at historically low levels. The Fed started cutting interest rates to bolster the economy in September, and recently has turned much more aggressive. In eight days in January, the Fed slashed rates by 1.25 percentage points — the biggest single-month reduction in a quarter-century. Since September, the Fed has cut its federal funds rate - what banks charge each other on overnight loans - by 2.25 percentage points to 3 percent. It also cut its discount rate on direct loans it makes to banks by 1.75 points to 3.5 percent. Rates are expected to move lower at the Fed's next meeting on March 18. Despite all this, mortgage rates are starting to creep up. Consumers should lock in low rates now, before they go higher.

More Choices

With more homes on the market for longer periods of time, buyers have more choices when it comes to selecting a home today.

Better Loans

The foreclosure crisis has motivated the government to create more consumer protections against predatory lenders than previously existed. Of course with the tightening of lending practices, less buyers are now qualified to buy a home. This has had a dramatic impact on the market.

Negotiation Power

Since there are fewer qualified buyers, YOU are in the driver’s seat. You are one of a select few buyers out there and you have the power to negotiate!

Seller Concessions

Sellers in today's market are competing amount many more sellers. Those that must sell are offering incentives to get their homes sold. Many do not advertise these incentives, but as your Realtor we can negotiate them for you. Seller's can pay closing costs, pay HOA fees for a year, offer home warranties, buy down your loan, drastically cut their price and more. Most bank owned properties (REO) will also negotiate incentives from their already low list price.

Purchasing Power

A temporary increase in the conforming loan limit means consumers should soon be able to borrow at lower interest rates for higher-priced homes. Prior to the increase, the conforming loan limit was $417,000. The spread between jumbo, or non-conforming mortgage loans and conforming mortgages is about 1.2 percentage points.

20-30% Drop in Prices

You know that neighborhood you have wanted to live in but could never afford? You watched the prices rise and rise until you could never afford it. Well, now maybe you can. Or you can at least get one step closer. Maybe it's time to get out of your townhouse, condo, less desirable neighborhood or rental and move up. It's time to weigh your options. This is a time of opportunity. There is a lot of pent up demand in the marketplace. I talk to buyers everyday who are "waiting for the bottom". Basic supply and demand tells you that when everyone starts buying again seller concessions will disappear, rates will go up, inventory will decrease and prices will rise. Call us today to help you find the best value in today's market. If you are ready and able to make the move, why wait? Now is the time to buy!

Call us or email us today!