FIRST-TIME AND MOVE-UP BUYERS TAKING ADVANTAGE OF LOWEST PRICES IN 15 YEARS

For the first time in many years it is now less expensive to own a home or condominium than to rent a comparable unit. With the recent introduction of the first-time-buyer tax credit, coupled with low home prices and all time low interest rates, home ownership is now an option that is hard to ignore for many who are currently renting.

Add to that the ongoing income tax savings and the fact that home ownership provides personal equity buildup via mortgage amortization and a very compelling case can be built for first-time home buyers.

Those contemplating a move to a larger, more expensive home are also recognizing the advantages of doing so in this market. Compressed home prices and interest rates are also making it much easier to move up. As an example, what would have been a $300,000 differential in the cost to move up just a few years ago would now be more like $150,000. That equates to significantly lower monthly payments for that dream home.

Apparently, buyers in both categories are beginning to understand these advantages. Our phones have been very busy in recent weeks with inquiries of this nature.

The first-time-buyer tax credit is available for a limited time only, expiring on December 1, 2009. Prospective home buyers wishing to use this program should act now while inventories are still high. Details are in the March 2 blog entry.