It is time for buyers to buy.
I know that many of you have homes that you first must sell, but those of you who are fortunate enough to be able to buy without selling need to act.
Why, you ask, when prices continue to drop?
First off, there will come a time when they stop. Unfortunately for the buyer who is trying to play the market, you won't know that the market has hit bottom until it starts to creep back up.
Secondly, the longer you wait, the longer you go without the tax benefit. If you have not done the math on this one, this might be a good time. Rental prices have held steady, or increased, so I am sure you are looking for some way to save money. Mortgage Interest deductions are one of the last great tax deductions.
Thirdly, in order for the freefall to stop, inventory needs to be cleared--or at least stabilized. Obviously, this is not your responsibility. There are financial repurcusions that DO affect you , however, the longer this crisis continues. Foreclosures, joblessness (due to lack of demand), and, reduced tax base for civic improvements...all of these things negatively affect you and your community.
As prices go down, comparables have become hard to find, so folks are having a hard time refinancing homes--a bank won't loan money unless it can prove, through recent comparable sales that a house has a specific value (again, this impacts jobs and tax revenue).
I feel like we are all in a holding pattern right now. Something has to break the stalemate. I had hoped that higher jumbo loan caps (at least in my area) would help , but they have not.
It would be great if the government would incent first time buyers with a tax break for buying their first home and for others who buy foreclosures--and a big bonus for a first time home buyer who does both!
I am not an economist, but I have to think that getting some of these homes sold would do wonders for the condition of individual neighborhoods. Crime would go down as the number of vacant properties decreases (saving more government money in law enforcement) and demand for local retail services would increase (and result in more jobs). More money would flow into the market as home inspection fees, points on loans and closing costs are charged, not to mention carpet cleaning, painting and moving costs!
So there it is...my plea for you to get out there and buy your first home!
If you like what you've read, please consider subscribing to my blog by clicking on the Orange RSS button and following the instructions. Thanks!
A GREAT Real Estate experience.
If I can help you, your friends or family buy or sell their next home in Northern Virginia, please let me know!
If you need help with a home outside of Northern Virginia, I have an extensive network of referral agents and will make sure you are working with the best!
The contents of this blog may not be copied or reproduced without the permission of Holly Weatherwax.