Buy Now or Risk Higher Prices!

As we approach the end of our summer break from school you will likely see real estate activity pick up. There are still a lot of homebuyers out there and most people don't like to move during the school year, especially if their kids have to change schools. People just don't want to disrupt their kids routines and they're absolutely correct. So those interested in buying a home will likely ramp up their efforts to close on that home and get moved in before the new school year begins, which is just 5 or 6 weeks from now for most of us.

This increase in buying activity will also help stabilize the housing market even more. The Case-Shiller Home Price Index, which tracks home prices in 20 of the nation's most populace cities, indicates that for the fourth consecutive month the pace at which home prices declined slowed considerably. What this means to you is that if you now know this information, it is likely that the short sale and foreclosure lenders know it also. This means that we may see lenders less willing to pay a buyer's closing costs because they see a recovery in the works.

That recovery is also evidenced by an ongoing decrease in the inventory of homes for sale. It appears that the combination of low home values, low interest rates and the $8,000 First-Time Homebuyer Tax Credit are working to stabilize the housing market. Let me encourage you to download the report I wrote called "Understanding the First-Time Homebuyer Tax Credit", which explains how the $8,000 Tax Credit works. Read it for yourself and give it to those you believe would benefit from knowing this credit is available to them.

It has been said that over 60% of first-time homebuyers don't even know the tax credit exists and adding to the pick up in activity will be the rush to buy a home prior to the expiration of the tax credit. I have included a countdown timer in the upper right-hand corner of this blog and my website www.YourFavoriteLender.com to remind homebuyers how much time they have left. For those that miss the boat, they will have lost out on an $8,000 gift from the government for doing something they intended to do anyway. Please help me get the word out about the tax credit.

To recap, there are several dynamics in motion right now that make now the best time to buy a home. They are as follows: 1) The lowest home prices seen in years
2) The lowest interest rates seen in years
3) The first-time homebuyer tax credit and that it expires November 30, 2009
4) As lenders and sellers perceive that a bottom is forming they will be less inclined to agree to a credit to the buyer for closing costs
5) Decreasing inventory of homes for sale feeds the lenders and sellers belief that the bottom is here leading to #4
6) An abundance of homebuyers competing for a decreasing inventory of homes for sale These six points show the market moving in a direction that benefits the buyer less and less. It is very likely that months from now or years from now as you look back on this time in the real estate market you will see that this was the best time you could have pulled the trigger on buying a home.