By now the news is out - home affordability is up, first time homebuyers are out in the dozens looking for the next best deal, and starter homes in the bottom price ranges are receiving multiple offers. But what you may not have heard is that the move-up housing market is still offering exceptional opportunities.
Due to a still "shell shocked" jumbo home mortgage market, buyers looking in the higher price ranges are required to come up with huge down payments in order to qualify for purchase financing. This lack of jumbo purchase financing is keeping the higher-end home prices at undervalued prices thus creating a great opportunity for the step-up buyer to utilize their current home's equity, either by refinancing or selling, as the down payment on a larger home.
Potential home buyers who aren’t eligible for the $8,000 first-time home buyer tax credit because they currently own a home actually have what could be an even bigger advantage - the opportunity to buy a new home that is bigger and better than they could have just a year or two before. “Now may be an ideal time for any family looking to upgrade from their starter home to one more suited to their current or future needs,” said Joe Robson, chairman of the National Association of Home Builders. “Buyers are able to get more home for their money by taking advantage of current prices and interest rates, along with the bargaining power that comes from the large number of homes on the market.”
Here are the top five reasons current home owners should consider upgrading to their dream home:
1. Interest rates are at historic lows, which means you can buy more house than you could a year ago - for the same monthly mortgage payment.
2. Prices have come down. Even if your current home is worth less than during the last housing market peak, your dream home is likely more affordable too.
3. There are plenty of homes on the market right now, both new construction and existing, giving you lots of choice-and negotiating power.
4. You can move in to your new home faster, as many builders either have completed homes in inventory or they can start work right away due to the production slowdown.
5. You may have outgrown your home, but it’s probably someone else’s ideal starter home. With the $8,000 tax credit expiring Nov. 30, now is the time to market your home to first-time buyers.
The current housing market offers unprecedented opportunities for first-time and move-up buyers alike. For more information on the $8,000 first-time home buyer tax credit and other first-time homebuyer incentives please visit: www.EagleHomeGroup.com/FirstTimeHomebuyers.
