California Rates

The Perfect Time to Move in Bigger Homes

When people are starting out, it is normal that they would opt for smaller and affordable homes. Not everyone can easily afford his or her dream house. It is normally an expensive expenditure for someone who is just starting out with his or her careers. Therefore, it is expected that moving up would likely come in later years, where job is more established or when entering a married life. 

When you come to this point, you will definitely think of finding bigger and better places. You may want to have additional rooms and more living spaces to improve the quality of life for every person living in that property. 

Is now the time? 

When you have the realized the need to move in bigger homes, this can be the perfect time to do so. Below are some of the reasons: 

1. Affordability- Ever since the real estate market slowed down, home values are dropping. According to NAR, resell homes for 2009 have dropped 12.9 percent. New-home prices will be dropping 9% for this year. Therefore, this is a chance for every buyer to take advantage. Homes are greatly discounted in the market today. 

2. Tax Benefits- If you are a first-time homebuyer, well you are in luck. You can avail of the $8,000 tax credit if you have seal the deal in home buying before Dec 1 of 2009. Yes, you may seem a little too late but wait until the government makes the announcement. The program will be extended with rumors of having bigger and better provisions for both first-time and repeat buyers. 

3. Better Deals- There is so many competitions in the market right now, that sellers desperately want to sell. As a result, you may have a chance to avail of bonuses that sellers are setting up as strategy to speed up sale. 

4. Negotiating Power- Currently, the real estate market is the buyer's market. This means fewer buyers and more sellers. Since there is too much competition in the market, you can be in a better position to negotiate and get the best deals that your money could buy. 

5. Low Interest Rates- If you are planning to get a mortgage, this should be the perfect time to get one. Rates are lower than ever. Rates for a 30-year fixed mortgage as dropped to 4.78 percent on average. For a 5-year adjustable rate mortgage, it averaged about 4.18% and the 1-year ARM remained 4.35%. If you plan to get one, you will have a chance to lock in rates that you know can afford paying for the years to come. 

Additional Considerations 

Yes, everything could be for your advantage. And it can be tempting to buy homes now. Before deciding, always look into your finances and evaluate whether you can accommodate an additional expense even if the current rates are super affordable. So be wise and be prepared for it. A house is a major purchase; involving a lot of money. No matter how affordable and advantageous the market projects it, it will still all up to your current status that will all make this time a perfect time to move in to bigger homes.