It is a Great Time to Buy Plano Real Estate!

It is a Great Time to Buy Plano Real Estate!  Many people are still afraid to buy a home in times like these, with the economy faltering and home prices continuing to fall. But if you are smart enough and brave enough, you may just be in for the best home-buying opportunity of a lifetime.

As a savvy home buyer ask for price reductions, improvements, closing costs, etc and the seller, motivated and desperate to get their home sold, is most likely to work with you. When the market starts improving, your negotiating power will start to diminish. With so much home inventory available you can get all of what you need and most of what you want.

If you’re able to invest in your own home now, the purchase makes sense for your situation and you’re prepared to live in that home for at least five years, there are five reasons why you may find the perfect home and a great deal!

1. Affordability is better than ever

According to the National Association of Realtors housing affordability index, homes were more affordable in December 2008, than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.

2. There is a large inventory to choose from

In many places it is taking months to sell a home, creating loads of inventory — from new homes to existing homes to foreclosures.  There was a 9.6-month supply of unsold existing homes in January given that month’s sales pace, according to NAR. For new homes, the inventory hit a 13.3-month supply at the end of January, according to the Commerce Department.

A large selection gives buyers more choices and drives down prices. And home sellers have gotten in tune with reality.  It’s nearly impossible to time the exact bottom of the housing market and even if you do there’s no guarantee housing values will rise quickly to their former heights.

3. Builders are offering big discounts

Home builders are getting even more aggressive with their pricing.  Take a look at completed new homes first because builders are offering such steep discounts. Plus, you’d have a warranty not only on the home itself, but also on the home’s appliances.  Builders want to save their credit, their brand, their reputation and they want to clear out their inventory.

 4. Mortgage rates are historically low

It’s not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. 

 5. You can get a federal tax credit  There’s now a federal credit of up to $8,000 for home buyers who haven’t owned a home in at least three years. Unlike the previous credit, this is money that doesn’t have to be paid back.  The extra cash will come in handy for buyers as the average first-time home buyer spends about $6,000 in the first six months of owning a home.