Top 5 Reasons to Buy a Home in 2010
1. Housing Affordability is at Record High Levels
Each month the National Association of Realtors issues it’s “Housing Affordability Index,” which measure the ability of the average family to afford the average home.
In November 2009, the national affordability index was 167.7. This means that if a family with the median income wanted to purchase a median-priced existing single-family home (with a 20% down payment of $34,380), they would have 167.7% of the qualifying income needed to purchase that home.
2. Intereste Rates are at Historic Lows
In the 1990s rates were higher than 10%. This look back through time makes it easy to see that today’s mortgage rates are relatively low.
3. Tax Credits Available for a Limited Time
- First-time homebuyers have until April 30, 2010, to take advantage of the federal tax credit of up to $8,000.
- Repeat Homebuyers have until April 30, 2010, to take advantage of the federal tax credit up to $6,500.
- Renovations: Buying ahome that needs a new roof, windows, or insulation? Qualified homeowners may receive a tax credit for 30% of renovation costs, up to a maximum of $1,500, for energy-efficient improvements to thier current primary residence.
4. Inventory of foreclosure and short sale properties
Alos called real-estate owned for REO, lender-mediated, lender-owned, or not-traditional, these properties may appeal to bargain hunters looking for that hidden gem.
5. Inventory of homes overall is at a 7-month supply nationally. It is a buyer’s market!
