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Is Now The Right Time To Buy a House?

The National Association of Realtors released pending home sales for April and the number was up. The items that fueled the rise were, low interest rates, housing prices and first time home buyers taking advantage of the government’s $8,000 first time buyer tax credit.

There have been many articles and commercials from various experts and organizations advertising that now is the right time to buy. The National Association of Realtors had a campaign last fall saying this. Since last fall interested rates have dropped and housing prices continued to fall. Where they wrong? I don’t think so. First it is impossible to catch a falling knife and if any body says they can predict the market bottom, then they should not be spending their time in Real Estate. They should be in Vegas headlining as the best fortune teller of the 21^st century. Did people who have bought since prices have dropped buy too soon? Not necessarily. It really all depends on what their goals and needs were. People that bought a house to raise their family, that plan to stay in there for a long time and financed the house with a 30 year mortgage, should be ok. Investors that speculated that it was the market bottom may have some problems.

So is it the right time to buy? The only person that can answer that question is you. Do you feel comfortable with your job situation? Are you planning on living in your new home for awhile so you can survive (and stomach) and any additional housing drops? Are you financially stable and willing to take on the biggest financial challenge of your lifetime (maybe excluding your kid’s college tuition)? If so, then I believe that you are ready to buy.

Don’t miss out on the $8,000 tax credit the government is offering to first time home buyers. You have to close on your house by November 30^th 2009 to take advantage of this great deal. There are also other programs out there for first time home buyers that would allow you to deduct $2,000 off of your taxes for the life of the loan. Theses program are called the MCC and the G-I Home Credit Program. You have to qualify for these programs, but if you do, it is great savings.

Whatever you decided to do just make sure you are comfortable with the decision. You do not want the great American dream turning into the great American nightmare.

Good Luck and happy house hunting!