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 its “Housing Affordability Index,” which measures 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 of $60,034 wanted to purchase a median-priced existing single-family home at $171,900 (with a 20% down payment of $34,380), they would have 167.7% of the qualifying income needed to purchase that home. The graph above shows how regional housing affordability has improved from one year ago.
2. Interest Rates Are at Historic Lows
In the 1990s rates were higher than 10 percent. This look back through time makes it easy to see that today’s mortgage rates are relatively low.
Take the first step toward a home purchase and contact me for a credit-checked PriorityBuyer® preapproval to see exactly how much you can borrow with today’s interest rates.
3. Tax Credits Available for a Limited Time
Renovations: Buying a home 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 their current primary residence.
4. Inventory of foreclosure and short sale properties
Also called real-estate owned or REO, lender-mediated, lender-owned, or non-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! More sellers than buyers in the marketplace can mean more
choices and more bargaining power for buyers.
Contact us today for a complimentary,
no-obligation home financing consultation.
1. Rates provided by the Federal Reserve Board.
2. A PriorityBuyer® preapproval decision is based on our preliminary review of credit
information only and is not a commitment to lend. We will be able to offer a loan commitment
upon verification of application information, satisfying all underwriting requirements and
conditions, and providing an acceptable property, appraisal, and title report.
3. Eligible improvements must be completed after January 1, 2009 and on or before December 31,
2010. Please consult a tax advisor.
4. Source: National Association of Realtors®, November 2009.
