You may keep hearing that this is a great time to buy a home. You may also be thinking yeah right?
I have had several people tell me that they are waiting until prices bottom out or until rates go down even more. While I completely understand why buyers are holding back I think it is important to share some information.
Over the past few weeks I’ve read articles that talk about the market bouncing back. Raleigh is one of the cities in the country that did not see the kind of decline that other cities in FL, NY, CA, and AZ saw. I’t been reported that the reason for this is because this area never saw the sharp double digit increases in the early to mid 2000′s. We have seen many many foreclosures and short sales which means people we did loose jobs and therefore some lost their homes, we have also seen homes underwater (when you own more than the home is worth). These two point combined make this area great for buying a home. Since in general the values have been stable or have not dropped significantly buyers can have the confidence that their purchase will hold it’s value especially if they buy well under market. If you fall in love with a home and it is selling at what the market says it should be selling at you can feel great about the fact that you are buying before prices start going back up again. Here is an article in Forbes.com that talks about Raleigh being a great place for real estate investors. Since your home is the largest investment you are most likely to make following their lead may help you find a great buy.
I’ve also been hearing about how low the rates are right now. Is is almost unheard of to have a buyer’s market and low rates. I remember when we were all very excited in 2005 and 2006 about the rates being in the 6% range and at that time we were in a sellers market. I am now going to closings where my clients are getting 4.25%. If you are a buyer right not you can have your cake and eat it too. I is amazing to me that you can purchase a home for $154,000 and have a payment of $782.59 plus the escrows. You can buy a home $119,000 home for $585.41 a month plus the escrows. Even with escrows your payment will most likely be less than what you are paying in rent.
In addition to low home prices and low rates if you live in NC you can have access to a $8,000 grant that can go towards your down payment and closing costs. To find out more about this program you can visit.
$8,000 Down Payment Assistance
There is also a program that can lend up to $20,000 towards down payment and closing costs from the city of Raleigh and Durham. To find out more about their requirements visit.
Citywide Homeownership Program
If you think that this is a good time to buy and it make sense for you to do this at this time it is certainly a great time to buy. There are many resources that you can take advantage of that will help you put a budget together and make sure it is a good step for you at this time. You can visit CESI to get more information on their services.