Jim Guido's Blog

Its no mystery that Buying a home is one of the biggest decisions an individual can make. Its also understandable that when considering a home purchase it may take some time to avoid rushing into such a large financial commitment. But currently there are several factors that might leave prospective home buyers who don’t purchase a property now wishing they had taken action sooner. Right now we have market conditions that make it the a great time to purchase a home. Consider the following Three reasons why I say its a good time to buy.

1. You will not receive a sizeable amount of money from Uncle Sam. For the past two years, the federal government has offered a home buyer tax credit to help stimulate the economy and that financial incentive is set to expire soon. First-time buyers who aren’t under contract to purchase a home by April 30, 2010 will leave the $8,000 that is available to them through the tax credit on the table. Meanwhile, repeat buyers will miss out on the opportunity to collect up to $6,500 from the government.

2. There is a good possibility that you might not lock-in on the historically-low interest rates. Interest rates have remained historically-low for several years now and with the economy beginning to show signs of recovery, it is widely believed that the government will soon put an end to these stimulus efforts. Many economists believe we will begin to see a sharp increase in interest rates which could result in a much higher monthly payment for those who wait. F

3. You might miss out on record home price affordability. The Home price affordability index is at its most optimal level in decades and as a result, those who wait to buy might pay more for the home they purchase than what todays prices are.

I truly believe it is Great time to buy your first home or move up to your next one.