So the $64 question for those debating whether to buy a home now or wait until later is this:

Is right now thru April 30th really a great time to buy (and close by June 30th) to get the first time buyer $8K tax credit (or 6.5K for current homeowners)? Or will prices drop even more? Have we really “bottomed out”?

1. If you don’t buy you won’t receive any extra money from Uncle Sam. The federal government is ending a home buyer tax credit to help stimulate housing. First-time buyers who aren’t under contract to purchase a home by April 30, 2010 will leave the $8,000 that is available to them through the tax credit on the table. Meanwhile, current buyers will miss out on the opportunity to collect up to $6,500 from the government.

2. Buyer’s might not lock-in on the historically-low interest rates. Thanks to measures taken by the Federal Reserve including the purchasing of mortgage-backed securities, interest rates have remained historically low. The Federal Reserve is ending their purchases of “mortgage backed securities” at the end of March which will most likely cause interest rates to increase. (The FR’s purchases have kept interest rates artificially low in my opinion!)

An interest rate increase of 1% on a 30-year fixed mortgage of $200,000 could cost a buyer $125.46 more a month or $45,166 more over 30 years.

3. Buyers may miss out on record home price affordability. Home price affordability is at its most optimal level in Central Ohio in the last 50 years. Those who wait to buy may pay more for the home they purchase than what that same home would cost right now. Mike and I have started to see a few homes that are actually selling quickly and at near list price (it all depends on how a property is priced though!) And in a few instances some of our current Buyer-Clients are having to compete with other buyers for the same home! Don’t panic, because this sales trough we’ve been in will most likely continue thru Spring of 2011, but…

Recap: Call us to discuss your options. Low seller expectations, slowly rising interest rates from historic low levels, and elevated inventories of homes for sale make it a great time to buy. Now if we can just keep congress out of medeling with housing the market will end it’s price correction faster!

I was on Bob Connor’s AM radio show on 610 WTVN two weeks ago about the so called shortage of mortgage money that seems to be spewing from the media recently.  It simply is NOT true!

If mortgage money was that tight or if investor’s found it soooooo undesireable then we’d have interest rates that would have skyrocketed!  Instead of 6% they would be at 16% on a 30 year fixed rate mortgage!

But here’s a news flash – rates continue to hover right around the 6% mark which is what it’s been percolating at for many months.  And you must keep things in historical perspective…

In 1983 I got married and we bought our first home using an Ohio First Time Buyer mortgage at a great rate of 9.98%.  Yes, that’s right – basically 10%!!!  Why was I happy?  Because regular rates were about 12 and 1/2%.  So a hair under 10% was a great “deal” at the time.

Bottom line – as a home buyer this is absolutely the best time to buy since the mid 1970’s.  The market has too many sellers and not enough buyers creating a “buyer’s market” and interest rates are still great (gad, I hate sounding like a Realtor!)  We are getting absolutely STUNNING DEALS for buyers…

Perspective people!