SAHBA Home Hints
May 18, 2008
The Waiting Game May Not Benefit Potential Home Buyers
Whether or not there is a recession, during a time of sinking interest rates potential new homeowners can still benefit.
Buying a new home now is a good investment that cannot be beat. Prices are very competitive, interest rates are affordable, and there are plenty of homes in all price ranges to choose from.
A Buyer's Cycle
In the past, sellers were able to control prices and terms with multiple bidders. However, the tables have turned and the buyer is in the driver's seat.
“It's a buyer's market,” said Erin Fitzgerald of First American Title and Chair of the SAHBA Sales & Marketing Council. “Sellers are being forced to be realistic. Not every house is worth one million dollars.”
Even so, sellers shouldn't be afraid to put their homes on the market. Waiting out the market to recoup even a $25,000 “loss” could prove to be a poor decision. Any so-called loss more than likely can be offset by a reduction in the price of a potential new home.
Continuing to wait could actually remove buyers from an affordable price range and miss financing opportunities. Typically, when interest rates hit rock bottom a quick increase will follow.
“Watching rates can prove to be a losing game,” said Fitzgerald.
Building Wealth in a New Home
Homeownership is still one of the best investments. Even as home prices are currently moderating or in some areas falling, rents continue to climb. Tax benefits from accumulating equity and ending rent payments can make households wealthier.
Over the long term, real estate has appreciated consistently in value. Nationally, home appreciation has historically risen almost 6% annually.
New Home Perks
Buying a new home can provide benefits beyond long-term financial advantages.
“New homes are coming with great incentives to buy,” said Fitzgerald, a SAHBA member. “Builders are giving the buyer a whole lot of home for a great price.”
Better insulation, energy-efficient appliances and modern floor plans make new homes great buys.
"These benefits will continue to project into the future, but these incentives may not, and interest rates are unpredictable," she concluded.
Details: Fitzgerald at (520) 203-3444.
SAHBA represents about 750 member businesses and 40,000 jobs serving the residential construction industry in Pima and Cochise counties.
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