People are afraid to buy a home in times like these, with the economy tanking and property prices continuing to fall. But if you’re brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime. Her are five reasons to buy now:
- Affordability is better than ever. According to the National Association of Realtors’ housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
- You have a large inventory to choose from. Inventories are at an all-time high on Singer Island with over 350 oceanfront condos available. Prices range from the high $200K to several million dollars giving buyers in every price range an opportunity to purchase. A large selection gives buyers more choices and drives down prices. When prices first started to drop several years ago, Sellers were reluctant to reduce their prices; but as time has moved on, they have gotten the picture.
- Builders are offering big discounts. Home builders are getting even more aggressive with their pricing. If you can found a builder with inventory, the chances are they will be offering steep discounts. As far as new condos on Singer Island are concerned, the Developers are offering their remaining units well below pre-construction pricing. Builders need the cash flow to continue with new projects. An additional bonus for buying from the builder is that you have not only a warranty on the home, but also on the home’s appliances.
- Mortgage rates are historically low. It’s not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage averaged 5.25%, according to Freddie Mac’s weekly mortgage survey. But low rates don’t mean lenders are handing out mortgages easily. You’ll need good credit, a substantial down payment and a willingness to document your income in order to qualify for those great rates, if you can qualify at all.
- You can get a federal tax credit. There’s currently a federal credit of up to $7,500 for home buyers who haven’t owned a home in at least three years. The credit needs to be paid back, although the repayment feature is removed in the economic stimulus plan that passed in the House of Representatives. The Senate in its version of the economic stimulus bill is proposing a $15,000 credit; both NAHB and the
National Association of Realtors want the incentive to help all buyers, not only those who are becoming homeowners for the first time.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected]