A strategic time to buy

January 30, 2008

We’ve all seen the news reports about the real estate market slow down.  Those reports have motivated many home buyers to wait until they are certain that the market has reached the bottom before they buy, so they can get the best deal.  This might not be the best strategy, here’s why:First, it is nearly impossible to accurately predict the real estate market’s ups and downs.  According to several analysts, prices generally are now at or near the bottom of the cycle.  In some areas the market is already coming back and seeing a gradual increase in values. The larger selection of homes that are listed these days makes it easier for you to find your ideal home in the right location.  Once the slump is over, that selection will dwindle.  With so many properties on the market, sellers are willing to negotiate price and terms and even offer incentives. This is the best way to make a deal rather than waiting for home prices to drop significantly.    Mortgage financing is still available at near record low interest rates.  True, it’s tougher to qualify for a loan today, but if you have good credit and a decent “credit score” you should have no problem in obtaining financing with very favorable terms. Many lenders are still offering 95 and 100% financing.  Rarely will you see the combination of factors we have in the market today.  Take advantage if you are in the market to buy.  It is a great time for first-time buyers and investors!