Right now is the time for buyers to give a concentrated effort to take advantage of the current market. Timing and positioning are always key factors and right now things are very bright for the buyer. In fact, it has not been better. Furthermore, based on the following points, the position is likely to be less beneficial to the buyer as time expires in the immediate and near future. This is my reasoning.
First, it is important to remember that the inventory is extremely positive for the buyer. The choices available to the buyer today are very attractive, in fact quite amazing, with the quality and quantity of properties for the serious home buyer. In fact, sellers may not like it, but the display scene is vast for those who are just lookers.
With rates about five percent at par, meaning no other points, payments can be very affordable. With the payment of points (fees), the rate could be "bought down" and get rates about four percent. This is a fixed rate loan.
Several reports over the last few days are indicating that the market has changed, not just changing. Nationally, the market is up over five percent this past month. As activity increases and sales expand, rates will typically start to climb.
There are many reasons today that the buyer who is ready, willing and able, should be working to make a buying decision. Consider these points:
* Qualified first time home buyers may get a gift from the IRS. There is an $ 8,000 tax credit if closing occurs before December 1, 2009.
* Funds up to $ 10,000 for down payment assistance have been available through a program with City of St George and Five County of Government and Hope Housing.
There are guidelines based on income, number in household and type of property.
* The State of Utah made available a $ 6,000 down payment assistance program for new construction properties. There are income limits, but with the $ 75,000 for single filing and $ 150,000 for joint filing, based on what incomes and employment have been this past year, there are many who will qualify.
* For folks looking to locate in rural areas, there is a government USDA Rural Development loan program permitting 100 % financing to qualified borrowers under the income limits established.
* Utah Housing has also made available assistance for closing costs.
Now is truly the time for buyers to gather there resources and take advantage of the present moment. We have had a devastating market the past while with all the unscrupulous fraud which lead to the market collapse. But the positive signs surfacing generally, gives one reason to believe that recovery is under way. As the market dynamics adjust, supply and demand will continue to show their effects and prices will inevitably adjust. Those who are thinking, "I will wait and see," will be saying: "I waited too long" when they realize prices slipped away from them. Traditionally, there is usually about a six month lag time before reality surfaces and shows its true face. One should still act with prudence, but for the buyer needing and wanting to get the "good deal," it would be a good idea to get with the program now.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: ( 435 ) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.