Five Reasons Buying Now is a Good Idea!
- Affordability
With a combination of lower priced homes, low interest rates, and steady median income the Home Affordability Index has reached levels not seen since 1999 in the Twin Cities Metro Area. The current level is 206, meaning the median household income is 206% of what it takes to qualify for a median priced home with 20% down 30 year financing. - Large Inventory To Choose From
There are currently nearly 10,000 listings available in the Metro Area. Though there are less listings than there were over the last two years, there are still more listings available than there were back in 2001. - Builders Offering Big Credits
Not only are Home Builders are getting aggressive with pricing, buying new also comes with warranties on not only the home, but all the appliances as well.
- Mortgage Rates are Historically Low
Its not just the price of a home that will affect affordability; mortgage terms will also affect monthly payments. These days rates are very attractive for conforming loans.
Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks.
- Get the Federal Tax Credit
There’s now a federal credit of up to $8,000 for home buyers who haven’t owned a home in at least three years. Unlike the previous credit, this is money that doesn’t have to be paid back. Additionally, people who have owned homes for over 5 years may also qualify for $6,500.That extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first six months of owning a home.
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