Should I Purchase a Home When the Bottom is Falling Out of the Housing Market?

Times are scary right now, it's virtually impossible to turn on the TV without hearing about how housing prices are dropping at an alarming rate. Add to that the instability in the stock market , and record job losses, people are running scared. Let's face it, all you have to do is turn on the news right now to feel as though it's the end of the world.

So Is Now the Best Time to Buy a House? Simply put Yes. In fact, many people would consider this a great time to purchase a home.

Here are a few reasons why you should consider buying a home sooner rather than later.

There are several homes right now selling below tax assessment value. If you purchase a home right now at a good price, you can benefit later when the market recovers. This is a great opportunity for first time homebuyers. More importantly, purchasing a home in this market provides a greater opportunity to start building equity faster. These low prices also means you may be able to buy in areas that were out of your price range a few years ago.

A year ago homes is a sub-division near my home were selling for $350,000, and up. Today there are several homes in the same sub-division selling for under $250,000.

3. INTEREST RATES ARE LOW

One of the greatest and most obvious reasons to consider buying a home is the interest rates. Interest rates today, are some of the lowest rates that we have seen in years. Although financing is not as simple as it was a few years ago, there are still some great financing programs available. Obtaining a loan is well within the reach of homebuyers with a good credit rating and a steady income that can support the monthly mortgage payments. With the government talking about attempting to get mortgage interest rates as low as 4.5%, now is the perfect time to buy a new home

4. Seller Incentives

Sellers are now more flexible on prices and terms. They’re offering extra incentives to attract buyers such as, large redecorating allowances, home warranties, paying closing cost, and including appliances in the sale.

For buyers, a position of strong buying power means more for your dollar. With lower prices, extra incentives, and more choices for home buyers, today’s market is truly positioned in the buyer’s advantage.

5.New Home Builders Sales incentives

Many builders are beginning to offer incentives to lure buyers. They do not want to be sitting on inventory. In some cases, they're offering price discounts or complimentary extras such as granite kitchen counter tops, custom cabinetry, upgraded carpeting, top of the line appliances and gourmet kitchens.

Of course no one can tell you when the very "best" time to buy a home is but prices have now dropped so low that it may be time for you to start thinking about buying now.

Follow your Dreams, not the market! Will you regret not buying your first home in this down market? Will you be comfortable buying later in a potentially rising market? My humble advice is to seize the opportunity.