The Perfect storm for First Time Home Buyers
My freind Dave from Denver called it right the other day when he said the housing market is a “Perfect Storm” right now for first time home buyers.
Being a fan of the book “The Perfect Storm” and now the show Swords is on TV every Tuesday which I can’t wait for it got me thinking. When I got out of college 13 short years ago and interest rates came down to like 7% if I remember correct people where going crazy because of how cheap you could finance for. Now I look at the market and people still don’t buy for various reasons but let me explain the “Perfect Housing Market Storm’ as I see it.
“Interest rates”
Lowest I have every seen them and they are staying low. Financing a 30 year fixed mortgage in the low 5″s is like paying $1 a gallon for gas for the rest of your life.
“Housing Prices”
Depending on who you talk to, who you watch and where you are looking at buying housing prices are probably down about 30%-40% from the 2006 highs and in some places around Lake County IL even more.
$8,000 first time home buyer credit
The cherry on top as I see it, if you buy a home as a first time home buyer and yes even if you sold another house 3 years ago you still qualify then you will receive a $8,000 tax credit on your 2009 tax return. You have to buy by December 1st 2009 and it has to be a owner occupied house, our website has more information on this.
3 things that make up this perfect storm for buying your 1st home right now and with FHA rates and FHA down payments still low I will bet that 1st time home buyers will never again see this opprotunity again in their lifetimes.
Matt
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