Why buy now (just the facts)

ALL THIS INFORMATION IS BASED ON INFORMATION FROM CAR. I DO NOT GUARANTEE THIS INFORMATION.

I have been having many conversations with buyers. Their concerns are valid and are
1. Home prices will continue to decline
2. No home buying activity
3. It is cheaper to rent
4. there will be more foreclosures that will depress home prices
5. A lot of people still can't afford homes

Are you ready? Let's tackle these issues with facts. First of all I am not a slick haired shiny suit Realtor. I always recommend you buy when you are ready and buy the home that fits your comfortable financial situation.

Ok let's go. 63% of current home buyers are buying because prices have come down and 37% are buying because now they can afford to move to better neighborhoods. These buyers are able to buy because the affordability index went from a low of 22% to a present high of over 50%.

When rental rates equal mortgage payments buyers start buying. With the new FHA loan programs buyers can buy a $250,000 home and pay the same as their rent. Yes, you can buy a home for $250,000 in Poway, Santee, Mira Mesa, Claremont, Linda Vista. Remember this is your first home not your dream home.

President Obama's stimulus package is also making it more appealing for people to buy. Home buyers will get a $8,000 tax credit if they buy between 4/8/08 - 7/1/09. If you purchase in '09 there won't be a repayment.

The subprime resets are as follows. The number of subprime loans are 21,500 which is 2.9% of total home sales. 39% have already reset and 35% reset in 2008 and 17% will reset this year and 9% will reset in 2010. Don't forget real estate is very local and these reset numbers will hit some areas more than others.

According the SDAR there is a 49% increase in home sales from 2008 - 2009. My buyers have been up against multiple offers on listings. The news reports a depressed housing market as you can see the facts are the facts. I have many buyers that have been renting for years and saving money. They are now back in the market.

Investors can now buy homes with 20% down and cash flow. That was not possible a few years ago. Investors and first time homebuyers are creating a floor for the housing market. In certain market areas time on market is less than 5 days. Yes, I said less than 5 days.

If you are on the fence I hope this article helps you make a wise decision. It's not for me to tell you whether to buy or not. I just provide the facts and let you make the best decision.