Great Time To Be A Homebuyer!

I thought in light of all the negativity surrounding the housing market I would elaborate on why potential and future homeowners need to buy in this market. Most of the "stigma" surrounding the housing slump is completely media generated; and to some extent rightfully so. Housing inventories are at all time highs, mortgage delinquencies are rising, foreclosures are up and in some areas over 300%, and sub-prime ARM resets are not at there peak yet. However, with all of this being said now is a great time to buy a home and the following paragraphs will explain why.

Interest rates are still at ridiculously low levels; yes historic lows! I know we have all heard this time and again but it is rare to get a 30 year fixed rate mortgage for 6.125%. I believe most people take these GREAT rates for granted. Your buying power from a mortgage standpoint cannot get much better.

Housing inventories are at all time highs! You have a plethora of homes to choose from; want a 3 bedroom 2 bath range on an unfinished basement on the north side of town, here you go! The market is flooded with first time home buyer options, middle-end homes and high end homes with differing styles, sizes and concepts in each area. You should be able to find a home you love at a price you can afford.

The best part about being a buyer in this market are the prices that have been associated with purchasing real estate! Builders are sitting on more inventory than they are accustomed to and therefore have been slashing prices to unload their homes. For instance, in Columbia Missouri and more specifically Boone County Missouri "new" homes sales are down an average of $27K. Sellers of "existing" homes are also extremely motivated as the marketing/sale time of these homes has dramatically increased and to counteract this they have been cutting prices.

What are the three key items that effect whether or not it's a time to be in the home buying stage? Interest rates, Inventory and prices; hopefully this has shed some light on how these factors are aligned for you to become a homeowner.

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