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 December 09, 2008

Perhaps it is a Good Time to Think About Buying a Home
There is speculation that in the next five or ten years when this current economic crisis is behind us, and home prices have regained strength, that now was the golden age for the first-time home buyer. Right now could be the chance of a lifetime for those individuals that are considering buying a home that are fortunate enough to have their financial resources in order: enough savings for an adequate down payment partnered with high FICO scores. Some analysts speculate that the time to buy is when economic pessimism is at its peak. The point of peak pessimism may be closer than we think; in many areas of the country home prices have dropped to drastically low levels; couple that fact with historically-low interest rates and the time to buy may not be more opportune. Interest rates are currently near 5.5%, and there is suggestion out there that the federal government may attempt to drive the rate as low as 4.5%. This would truly be an historic opportunity to lock in such a low rate for the next three decades.
First time buyers need to keep in mind that in addition to the benefits that the current economic situation affords them, they still have the advantage of not needing to sell their current home in order to make a purchase. This could be a feather in your cap when making offers on homes.

Those out there that are hoping for a speedy recovery of the economy should be cheering on those first time home buyers to go ahead and make that purchase. First time buyers enable sellers to move on or move up to other homes which in turn stimulates even more sales activity.

First time buyers that are seriously considering entering today's market should do their homework. As is the case in all economic situations: location is everything when selecting a new home. The potential for equity in a future home needs to be investigated. Several major markets around the country could continue to see declines through the year 2012. The markets of Seattle, New York City, Los Angeles, and San Francisco are among 33 areas of concern discussed in the study entitled "The Changing Prospects for Building Home Equity."

Prospective buyers in the San Diego housing market should work closely with their realtor to determine the positive and negative factors of different areas prior to looking at available properties.