Six Reasons Why Now May Be the Right Time to Buy
The New York Times reports: "This might be the right time to find a bargain, especially for buyers approaching their retirement years who can afford to take their time." CNN Money says, in some areas, home prices are the lowest they've been in four years. This could mean big savings for today's buyers. Afraid to take the plunge? Here's six things to consider to help you shake those jitters:
According to the Office of Federal Housing Enterprise Oversight, over half of all metropolitan statistical areas are showing an appreciation in home prices each quarter - the Knoxville MSA is one of them. "Only 15 out of 50 states have shown any actual price decline in the past year. The rest still show modest appreciation in home values." Also, the "type of annual appreciation we’ve seen since 2005 (ranging from 1.8% to 3.7%) is similar to the type of appreciation the U.S. experienced in the mid to late 90s, right before the real estate boom."
According to the National Association of Realtors, the "average 30 year, fixed-rate mortgage is still lower than it was in June 2007." Also: "It’s still a very attractive market for buyers, with large inventory, attractive interest rates and sellers willing to negotiate." According to the NAR's Housing Affordability Index, "Housing affordability is likely to improve by 15 percentage points to 127 for all of 2008." Many potential home buyers will benefit from that, as well as the Housing and Economic Recovery Act which was passed this summer. The act allows up to $7500 in tax credit for most first time buyers who purchase between April 9, 2008 and July 1, 2009. For those who aren't looking to purchase their first home, know that the market will likely see some stimulation as a result of this act which could mean an easier sale of your current home, but also, with more buyers on the market, a rise in the cost of your next home. Now may be the right time to buy. For more information on Knoxville's housing market, click here. Questions? Submit them here.
