Charlotte, NC. Yes There are new Rules for Real Estate in 2010. 2009 Changed EVERYTHING. I’m talking about those changes here, and here. But That doesn’t affect the following.
Are you going to buy a home in 2010? If the answer is Yes, it is time to get after it, here’s why.
Mortgage Interest rates are at (nearly) all time lows, and creeping up slowly.
As the economic recovery expands, expect rates to go up. The difference between 5% and 6% interest on a $250,000 loan? Fixed for 30 years, the 5% payment is $1,342/mo, the 6% payment is $1,499, that’s $157/mo, $1,884 per year, and $18,840 over 10 years.
On a $600,000 loan? Jumbo loans cost more, so what is the difference between 6 and 7%? At 6% its $3,597/mo at 7% $3,990. That’s $393 per month difference, $4,716 per year, and $47, 160 over ten years. Real money.
Tax Credits Will Bring Out Sellers and Buyers in the Spring
The first home buyer tax credit most are familiar with by now- it offers 10% credit up to $8,000 for first home buyers and it goes away April 30 for contracts, July 1 for closings.
The “move-up” home buyer tax credit of $6500: to qualify you have to be in your home for a minimum of 5 years, and contract for a new home by April 30, which means you have to sell first quarter of 2010, then write a contract (contingent perhaps on the closing) on a new home by April 30, and close on that home by July 1. Additional details including income limits in the link.
Prices Have Bottomed and are Edging up
Nationally prices have fallen 30% since their peak in 2005. Arguably housing hasn’t been this affordable since the Great Depression argues the WSJ. After a steep fall in the 4th quarter of 2008, prices remained steady through out the worst real estate year in history, then began edging up in late spring. Except for some seasonal and minor declines in the fall, Charlotte home prices are higher at the end of 2009 then at the beginning according to Case-Shiller.
So great home values, historically low mortgage rates plus tax credits for many… make this the best time to buy a home in atleast the last decade. Maybe much much longer.
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