Seven Reasons Why NOW is the Best Time in Years to Buy a Home

Seven  Reasons Why NOW is the Best Time in Years to Buy a Home
1. Home affordability is at an all-time high.
The median mortgage payment on the median priced home as a percentage of the median household income is lower than it's been in a generation.
2. Mortgage rates have reached rock bottom, and may go up soon.
As interest rates start to inch back upwards, monthly payments and total loan costs will spike upwards.
3. Buy Now; Buy Low!
After declining nearly three years, home prices are stabilizing in most markets.
4. Sellers are motivated.
This means that buyers have the upper hand! From banks looking to dispose of foreclosed properties to homeowners who are fiercely competing among an excess of housing inventory, buyers have untold choices and negotiating power.
5. Financing is readily available for qualified buyers!
Banks are getting back in the game and ready to lend to well-qualified buyers.
6. Owning vs. renting is increasingly favorable.
Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it's been in the past 22 years.
7. Homeownership is at the core of the American Dream!
Owning a home is critical to financial stability and wealth building. It's a forced savings account, a place to live and a fabulous tax deduction.

The American people are tired of how Washington keeps taking away their benefits to help with their over spending.

The American people are tired of how Washington keeps taking away their benefits to help with their over spending. Many national home owners rights groups are starting to mobilize as The Obama administration officially unveiled it's plan to remake the mortgage market and reduce the government's role in housing finance by shutting down government backed mortgages.


The “white paper" outlines steps the Obama says will help draw private money back into the mortgage market.

"We are going to start the process of reform now, but we are going to do it responsibly and carefully so that we support the recovery and the process of repair of the housing market," Treasury Secretary Tim Geithner said in a statement.

The government-sponsored enterprises of Fannie and Freddie backs home loans, and converts them into assets that can be sold to investors. They stand behind the vast majority of mortgages in the United States. In the past these institutions were traded publicly, they were taken over by the government in late 2008.

Part of the white house’s plan is to eliminate home owner tax deductions for what they consider the wealthiest Americans, which is those with adjusted incomes of over $170,000 vs. the $250,000 they had previously spoke about. The fear is that they start here and then whittle away all deductions. It seems simpler that if they are going to do that, than a flat tax or a Universal tax may be fairer. Only time will tell where this issue will end up and how much it will cost the tax payers.

http://money.cnn.com/2011/02/11/news/companies/fannie_mae_freddie_mac_white_house_proposal/index.htm

Home Buyers who need to finance shouldn't wait to long, sadly rates are on the rise.

Buyers who need to finance shouldn't wait to long, rates are on the rise. If you aren't one of lucky ones who have cash to purchase, then it is now time to leap off  the fence. It seems that new money to purchase a home is now rising above the record lows we have enjoyed the last couple of years. As these rates go up the amount in monthly payment go up also. Right now many families are able to purchase a home less than what a similar home can rent for on the same street. It seems the waiting is over. Although we may still see some prices adjust a little lower in some markets the real risk is in inflation and the rise in interest rates which will affect the monhtly payment for 30 YEARS.

http://realestateinvestordaily.com/market-information-news/home-purchase-mortgage-applications-decrease-interest-rates-on-the-rise-2/

Cash sales are on the rise in Florida

We are seeing alot more investors leaving the sidelines and joining in the the greatest buyer opportunity in the last  20 years. Although we have seen some big down turns in many, if not all markets, the investors flush with cash are starting to take advantage of this part of the housing cycle. Usually in a down market there are more cash sales. This is certainly the case this time around.
Cash buyers demand a discount off the listing price, and many times they will get it.

Cities in Florida, Cal, and Las Vegas are seeing the largest increase in cash transactions.

Many Florida Realtors feel this will continue as the market travels through this part of the cycle.

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=254435