As the holidays draw near and the cold sets in we tend to become more dormant, much like the real estate market, making it a great time to get out and buy before conditions likely thaw out by spring. Kids are settled into the school year, the holidays are approaching, and many put off buying a home until spring, or at least until the new year. But the savvy buyer will take advantage of the current conditions, which, coupled with low interest rates, make it an excellent time to buy.
The real estate narket ihas already softened considerably and inventory is now decreasing. Fewer sellers are willing to sell in the current conditions and many areas have much fewer homes to choose from. There is no guarantee that in the spring there will be a normal influx of new homes for sale. Currently there are fewer bank repossessions and with the current increased rate of loan modifications we may not have a new crop coming along soon.
If you have been thinking about buying, or plan on buying in the near future, you may want to think about changing your time frame.
No one knows what the future holds for real estate but most current predictors say we will be improving by the second quarter of 2009. By waiting not only will you risk the chance that prices will start to rise, but who knows what interest rates will be like next year. Today’s great rates are incentive enough to think about buying now.
The chill of winter is beginning to set in and the holiday season is nearly upon us, sellers are beginning to see that they must be more competitive in the marketplace to affect a sale. So if you do start looking in the weeks ahead, be sure to keep an open mind. Always think about the potential. You can always change the carpet that would clash with your furnishings, paint those dingy walls, replace outdated appliances, or add the back yard patio area that is missing. Remember, if the sellers are anxious to sell or the house has been on the market a considerable length of time, you’ll likely have the advantage in the negotiation process.
Finally, if you do manage to buy and close escrow by the end of the year, you’ll have the added benefit of being able to deduct your closing costs, mortgage interest, and property taxes on your 2008 tax return. And if you are a first time buyer the governemnt is offering a $7500 tax credit. Currently it comes with a catch-needs to be paid back over a period of years-but watch for updates, this could change. Changes are made almost daily to the bail out program and we are hoping the payback feature will be dropped.