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Spring 2009- Real Estate Update

Is this a good time to buy a home?

 In this economic climate Realtors are often asked if this is a good time to buy a home.  Some clients are concerned home prices may continue to fall further than they have already.  They believe the best strategy is to wait for the low point in the market and then buy.  The weakness of this strategy is that you don’t know where the bottom is until it’s already past by you, which means you’ve missed it!

Home prices are just one of the factors you should use in calculating your cost of ownership. Interest rates and financing availability are also important. Today, interest rates are still near record lows. Since your monthly mortgage payment is a combination of paying the interest owed and paying down your principal, if home prices come down a little more but interest rates go up, it could cost you even more to pay  a mortgage on an identical home!

Your home is a major investment, however, it is also a major part of your personal life.  It’s important to live in a home that reflects your lifestyle, yet is within your financial capabilities.  So, it may be more important to buy today with the low interest rates and low home prices, rather than to wait.

Media is Optimistic                                     

Forbes.com: In their article Ten Things to Buy before the Economy Improves, says “This may the best time in a generation to buy a home.”

2009 Homebuyer Tax Credit is Good News for Home Buyers

The American Recovery and Reinvestment Act provides for a $8,000 tax credit that is available for first time home buyers, and those who have not owned a principle residence in the past three years.  To be eligible for this credit the home purchase must be recorded between January 1, 2009 and before December 1, 2009. Contact your tax professional for detailed information.

A Village Property Agent is available to help you through the complex and exciting process of home ownership.  Please call one of our offices or go to our website www.villagesite.com.