Taking a break or a window of opportunity for Buying a Home NOW!
Taking a break or a window of opportunity!
Buyers are taking a break! Unbelievable as it may seem, just 2 weeks ago, buyers were stepping all over each other, offering higher than ask and appraised value for homes and battling it out in multiple offer situations to capitalize on the Governments tax credit. And now, it appears that buyers are taking a break. Showings have dropped by 40% on our current inventory. We have homes available without any offers for purchase. That would have been unheard of just 2 weeks ago. Interest rates are still amazing!! So how much has the promise of a tax credit influenced the buyer market?
If you are a person waiting to purchase a home; NOW is the time to act. If an $8000 tax credit is the only reason that you were considering a home purchase, let me remind you of the advantages of home ownership in today’s market. Interest rates are at historical low values. The cost of a mortgage today is at parity with current rental rates in much of the Northern Virginia marketplace. Mortgage interest tax deduction is a huge tax advantage of homeownership (for those that qualify). Home prices in Northern Virginia are affordable. If the loss of the tax credit is holding you back, let me offer some suggestions. Hurry; don’t wait for interest rates to rise. A small increase in interest rates can have a significant impact on monthly payments. Present an offer! With less competition for homes, why not ask the Seller to contribute money for closing costs? Why not present an offer that is slightly below the asking price? Find a home with incentives available. Currently, Fannie Mae is offering 3.5% closing costs paid for home purchases before 6/30/10 (call for details and eligibility). That would be a $10,500 credit for those buyers looking to purchase a $300,000 home. This is a better incentive than the tax credit. Call me now for a list of homes from Fannie Mae that qualify for this incentive.
So there you have it, inventory is increasing and competition is down. What a great opportunity to purchase a home! Call me and we can get moving!