Seriously, what more do you need? Low prices? Try great first-time homes for around $100,000. Lower interest rates? Rates are varying these days between 4.5-5.75% for well-qualified borrowers. That puts a home within your reach for as little as $600-$850 a month--almost guaranteed to be less than your rent.
Nationally syndicated columnist Kenneth Harney had a great article that appeared in the San Francisco Chronicle recently on just this topic that you should check out. And that was before Congress extended and increased the size of their first-time homebuyer tax credit (read: free money) to further stimulate home purchases across the country.
The only half-credible excuse I've heard is, "yea, but what if prices go down even more after my purchase?" While that may have been true before, prices over the last 4 months or so have not decreased among the $70,000-$170,000 price range for smaller first-timer-type homes, and in many cases have begun to increase in value.
Case in point: we have a very nice home overall that went up for sale recently at 2404 Dana Lane, Modesto, CA (see it on my website here). The comparable homes suggested a value of around $95,000. This was the conclusion that my team came to about the home's value based on what similar homes had been selling for in the same neighborhood within the last few months. We even confirmed that the second opinion Broker Price Opinion and the Appraisal concurred with that general finding. But what happened? A few dozen offers within the first week, with most offers well above that list price.
What does that show? It shows that the market is making a comeback. Today's buyers are starting to get more aggressive with the prices we know have. They are willing to pay more than they would have 6-9 months ago. And that means that some homes may be starting to appreciate once again. So don't make the mistake of waiting another year or so before you decide to take the plunge and buy, because you'll likely be paying more for that house than if you bought it this year.
