Did you miss the $8000 Tax Credit? That might be a good thing.
Times change. I am always looking at the real estate situation in our market and I can tell you that times change. There were lots of sales made in the beginning of the year because the federal government decided to provide an $8000 tax credit for anyone buying their first home and they added a $6500 tax credit for anyone buying another home. It boosted sales and I think it was probably a good thing for our market even though it was an expensive way to motivate people who were probably going to buy a house anyway.
Now for the current news.
If you purchase a home right now you will save more than $19,000 in interest on a $200,000 house than if you purchased the same home in April of this year. The savings is from the lower interest rates we are enjoying right now. I will tell you that interest rates are at an all time low and the news I just got today says they are up a little over last week for 30 year money so now is a better time to buy than it was in April just from the cost savings part of this time but it won’t last forever.
The picture below shows the tax credit numbers vs. the current interest rate numbers if you are interested in the details. Check it out by clicking on it for a bigger version.
Housing has never been more affordable than it is today. If you are thinking about a purchase there is more inventory to choose from and most of it is a really good value. I was doing a search for one of my clients to see how many houses were in the Dacula area under $75,000. I found 10. Some of those say they are move in ready. Now I have to confirm that because the definition of ‘move in ready’ is subjective but presuming it is true that is a house payment of less than $400 per month for principle and interest and that scales up as the price goes up so there are great values out there. The payment is based on a 3.5% down payment so it works for owner occupied and with 25% down it works for investors too.
If you are ready to talk I am ready to listen. Call me at 678-231-1578 with questions and we’ll get you answers. I am here to help.
Jerry Robertson
678-231-1578 Cell