| Daily Real Estate News |
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| Should I buy a house now or wait until later? |
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This has always been a common question among home buyers. With the uncertainty of our current economy, this question becomes even more important. In truth, nobody can answer this question for you. It's up to you, the home buyer, to decide whether or not it's a good time to take the plunge.
Five Good Reasons for Buying Now
Should you buy a house now, or wait until next year? Here are five things to consider when making this important decision.
1. In May 2009, housing starts rose by 17% over April. This surprised many economists, who were not expecting such an increase. This rise in housing starts (new construction) indicates rising confidence within the building industry. This kind of trend usually coincides with housing recovery in general.
2. Many economists are saying that the housing market has reached bottom in many parts of the country. This means that buyers could get into a home at "rock bottom" prices, and without losing any further value after the purchase.
3. Mortgage rates have been at record lows for several months now, but they are starting to rise. During the week of June 8, 2009, the average rates on a 30-year fixed mortgage reached their highest point in seven months. Nobody has a crystal ball, of course, but many economists expect rates to exceed 6% by the end of this year. Rising interest rates are another good reason to buy now instead of later.
4. "First-time" home buyers who have not owned a home in the last three years can still qualify for a tax credit on their purchase, up to $8,000. Currently, this program is set to expire in December 2009. So it's yet another reason to buy a house now, rather than later.
5. Prices are still relatively low, but this may soon change. The positive signs mentioned above will bring more buyers into the market. This will eventually reduce the huge surplus of homes for sale, which in turn will drive prices upward once again.
Here's what it all boils down to. Only you can decide if now is a good time to buy a house. You need to review your finances and establish a budget, before you can answer this question with any certainty. There are plenty of good reasons to buy a home sooner, rather than later. So give it some serious consideration! The market is full of ups and downs, and there are definitely better times to buy and sell. This is a buyers market, take advantage of it.
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