According to the National Association of Realtors, 41% of the buyers in 2008 were first time buyers. In California, 59% of first time buyers were able to afford a home in the last quarter of last year, compared to 33% in 2006.  As homes were staying longer on the market, homesellers were more willing to drop the price providing more opportunities to the buyers. Will prices still decline?  Maybe.  You will need to look at the overall picture though.  Should the interest rates go up by 1%, that may be equivalent to the anticipated decline in price. 

Don’t forget to factor in tax write off and the $8,000 federal tax incentive.  Just like your investments and the stock market, you need to look at the rate of return over at least 5 years especially if you are buying a home to live in.  Any gain or loss is just a paper gain or loss until you sell the home.  Besides, how do we know when the market hits bottom?  As a savy investor puts it, we will only know that the market has hit bottom when prices start to come back, then we are not buying at the bottom anymore.

Just last week, the State of California announced that they are offering a tax incentive to any buyer, first time or not, of any income level,  if they buy a home between March 1, 2009 to March 1, 2010 IF they buy a newly constructed home that has never been lived in.  This is a great boon not only to the buyers but also to homebuilders who are struggling to sell their inventory. 

Given all these incentives, isn’t it time for you and your family to live in the home of you dreams?

Elizabeth M. Eugenio, (909) 376-8615

Email: Elizabeth@HomesByLiz.com, Websiste: www.HomesByLiz.com

Certified Distressed Propery Expert (CDPE), Certified Residential Specialist CRS), Graduate Realtor Institute (GRI)

Is it finally time to dive in the market? is a post from: Chino Hills Real Estate Resource Center