Now is the time to buy

Now is an ideal time to buy, in most markets prices won’t go any lower
and there is an abundance of inventory. Inventory of homes for
sale is at a 15-year high. There are many options out there for
many buyers and many sellers who are willing to negotiate and work
towards a win-win situation that works for both parties.
Go to www.REALTOR.com to see over 4 million active listings.
The Market is Getting Stronger and
Every Market is Different
Remember that all real estate is local and that all markets are
different. There are opportunities out there for a buyer if you’re
willing to look. The Homebuyer Tax Credit contained in the Housing
and Economic Recovery Act of 2008 was updated in the American
Recovery and Reinvestment Act of 2009. For 2009 purchasers
the credit is $8000 and does not need to be repaid. The credit is
available through December 1, 2009, meaning qualified buyers
only have a short window of opportunity to take advantage of this
special program.
A modest recovery for existing-home sales is expected
in 2009. Pent-up demand, coupled with an abundance of safer
mortgage products, will lead to near-term market improvements.
The Emergency Economic Stability Act enacted on October 3, 2008
will help to improve credit markets and allow housing to lead the
economic recovery.
FHA Loans Set to Increase
There are many choices for buyers looking for mortgages in this
market. One option, FHA home loans, are a viable alternative for
many first time buyers. The Federal Housing Administration (FHA)
— which is part of HUD — insures the loan, so your lender can
offer you a better deal, offering low down payments, low closing
costs, and easy credit qualifying. FHA market share for home
purchases is expected to rise significantly over the next 3 years, from
an estimated 4% in 2007 to an estimated 35% in 2009.

Find out about FHA and other loans, go to www.Hud.gov/buying/loans
and www.REALTOR.org and do a search for Consumer Literacy.
Benefits of Ownership
Owning a home is the American dream. It not only provides amazing
tax benefits but it also provides shelter and security to families. Did
you know that:
— Dollar for dollar, the rate of return on an individual’s cash
down payment on a house is substantial? And that repeat
buyers are able to put 19% more down on a new home due
to appreciation?
— Home owners move less often and are more likely to vote
and volunteer time for political and charitable causes than
renters?
— When you own a home you can deduct the property taxes and
mortgage interest from your income taxes?
— The gains that you make on a primary residence that you’ve
occupied for two years out of 5 can be tax free?

Housing Market Facts
NAR has created a new website www.HousingMarketFacts.com to
help consumers find out the latest information about the housing
market and the issues that affect you, information specifically for
buyers, how to do more research, and learn more about the benefits
of home ownership.
Mortgages are at Historically Low Rates
For buyers who qualify, mortgage rates are near historical
lows. Rates are well under 6%. According to data provided by
Freddie Mac, rates averaged 9.2% in the past 30 years.
Go to www.FreddieMac.com and look at the Primary Mortgage
Market Survey® for more information on the latest rates. In addition,
low interest rates, coupled with recent corrections, give people
looking to upgrade a unique opportunity to take advantage of
market conditions.
The Value of Your Investment
Despite some contrary media reports and some moderate losses in
value in the short-term, home values long-term have and
will continue to rise. Real estate is a long-term investment.
Home values could fall in some years, though, on average over the
past 30 years, the median price of existing homes has increased
more than 6 percent every year. Thanks to the power of leverage,
a homeowner’s return on investment is even more impressive over
time. Visit www.HousingMarketFacts.com to learn more.