It Pays to Support Responsible Homeownership — Let’s All Do Our Part

Greetings Friends!

I think I’ve mentioned in past posts, but I’m making some pretty major lifestyle changes in 2011, trying to be a better person physically, mentally, and spiritually. I’ve already started making strides toward several of these goals, but I have been looking for ways to do more for local community and charity organizations.

Well, I came across this article today and it opened my eyes to the many ways we can help people less fortunate than ourselves through donations, or simply by some good ol’ fashioned hard work. I hope you’ll take a moment to read the article below and figure out how you can help. Homeownership is more than the American dream, for some, it may be the turning point they’ve been waiting for.

Thanks for reading! Please let me know if I can ever answer any of your questions.

Helping others become homeowners protects your home’s value and builds stronger communities.

When people move from renting to owning a home, they’re more likely to vote, get involved in community groups, and care about their home’s appearance. The children of homeowners do 23% better in school, according to a 2001 study by Harvard’s Joint Center for Housing Studies. And a steady flow of first-time homebuyers makes it easier to sell your own starter home when you’re ready to move up to a larger property.

Make housing affordable
One way to make more people homeowners is to make housing more affordable. All U.S. homeowners benefit from policies like the mortgage interest tax deduction. Many use government-backed mortgage insurance to lower loan costs. A variety of public and private programs offer low-cost loans and downpayment assistance to help Americans become homeowners. Help prospective homeowners save a downpayment by donating to sites like EARN, a non-profit that uses donations to match funds saved by low-wage earners.

Reduce foreclosures and preserve home value
Foreclosure matters because it hurts all homeowners. In 2009, foreclosures will cause property values to decline an average of $7,200 for about 70 million homeowners, resulting in a $502 billion loss in home equity, the Center for Responsible Lending estimates. Each foreclosure within 1/8th of a mile of your home lowers your property value about 0.744 percent, CRL says.

“One of the sad lessons of the [recent past] is that we aren’t alone,” says Nicolas P. Retsinas, director of the JCHS. “It’s clear that if the family next door loses their home to foreclosure, my home’s value will go down. Therefore, I have a vested interest in ensuring that people become homeowners and that homeownership is sustained over time.”

One effective tool against foreclosure is educating homeowners before they buy. The Joint Center found that loan delinquencies fell 13% with homeownership counseling. People who go through pre-purchase and post-purchase counseling and learn about mortgages, family budgeting, and home maintenance are less apt to face foreclosure, says Michael Berti, senior homeownership specialist at the Rural Ulster Preservation Company in Kingston, N.Y.

Support groups that help homeowners
One way to do your part to help other homeowners is by donating your time or money to some of the many non-profits that promote responsible homeownership.

Habitat for Humanity partners with new homeowners to build affordable housing. Habitat homes aren’t free. Homeowners work hundreds of hours, get homeownership counseling, and make mortgage payments.

The United Way supports many local programs that build affordable housing, help families build financial assets, and teach financial management skills. If you donate to United Way, you can direct your contribution to those causes.

HomeownershipSF, in San Francisco, tries to intervene where people facing foreclosure have the resources to catch up on their loan. If “the home can’t be saved, we try to get a first-time homebuyer we’ve worked with into the home as quickly as possible to stabilize the neighborhood,” says Interim Director Christi Baker.

Government programs support homeownership
Supporting federal state, and local programs that help create homeowners is another way you can expand responsible and affordable homeownership.

The U.S. Department of Veterans Affairs and the Federal Housing Authority provide mortgage loan insurance or guarantees that let people buy homes with only a small downpayment and borrow at lower interest rates.

Government-sponsored groups Fannie Mae, Freddie Mac, and government-run Ginnie Mae buy and securitize mortgage loans made by banks, freeing up money, so banks can keep lending.

Sites like Govtrack and RollCall help you stay on top of laws that affect homeowners.

HUD’s HOME program provides financial support to state and local housing authorities to build and renovate for-sale and rental housing for lower-income Americans.

In U.S. cities of all sizes, the HOPE VI program has funded plans to replace deteriorating public housing with new low-rise, mixed-income homes. These developments sell most homes at market rates, but designate a percentage for use by low-income homeowners.

How to get involved
You can support responsible homeownership in many ways. Retired construction contractors France and Bill Moriarity travel the country in their RV managing Habitat construction projects. “We like it because it’s a hand up, not a hand out,” France Moriarity says. Habitat volunteers don’t need construction skills and can sign up to work as little as one day at a time. Groups can volunteer together. Organizations like Rebuilding Together and NeighborWorks America sponsor once yearly volunteer events that help lower-income homeowners repair their homes.

In San Francisco, Gregg Lynn convinced 150 people from his professional network to donate a percentage of their income to EARN. Follow his lead by asking your professional network, trade association, or social group to contribute.

Dona DeZube has been writing about real estate for over two decades. She lives a suburban Baltimore 1970s rancher on a 3-acre lot shared with possums, raccoons, foxes, a herd of deer, and her blue-tick hound.

Don’t Forget About Home-Related Tax Credits When You’re Working on Your Taxes!

Greetings Friends!

Since we are entering tax season I thought it might be helpful to share some tax-related real estate info with you this week. I know that most of you are well aware of the home buyer tax credit that expired in April, 2010, and I hope that you were able to cash in on that before it went away. But, did you know that there are actually many home-related improvements and loans that may be tax deductible, among other things such as loan points and future sales of your home?

This is probably the place where I should tell you that I’m not a CPA, nor am I qualified in any way to give you tax advice, and since I’m informing you of this now you should probably speak to you tax advisor about anything I mention in this article before you try to write it off.

Okay, now that I’ve covered my rear, I’m actually going to share an article written by someone much more intelligent than me which outlines these write offs. I hope you find this useful, and remember, if you own an investment property like I do, don’t forget to write off repairs and expenses you’ve incurred there as well.

As always, please don’t hesitate to call, write, or comment with any real estate related questions or concerns you may have. I’m here to help!

By Mark Kennan, eHow contributor

When you are improving your home, you can take several deductions to reduce your tax liability. These deductions can be either above-the-line deductions or itemized deductions. You must chose whether to take the total of your itemized deductions or the standard deduction on your tax return. You can take above-the-line deductions regardless of whether you take the standard deduction.

Loan Interest
If you take out a mortgage or home-equity line that is used exclusively for home improvements, you can deduct the interest on first $500,000 of the loan. If you are married and file a joint return, you can deduct the interest on the first $1,000,000 of the loan. This is an itemized deduction.
Loan Points
If you refinance your loan, you are allowed to deduct the points that you pay. However, instead of being allowed to deduct them at the time the loan is issued like a mortgage, you have to deduct them over the life of the loan. For example, if you paid $3,000 in points on a 15-year home-equity loan, instead of deducting the $3,000 in the year you take out the loan you would deduct $200 each year. If you end the loan early, you can deduct the remaining value of the points. For example, if you paid off the loan at the end of the fifth year, you could deduct the remaining $3,000 at that time. Points are an itemized deduction.
Energy Efficiency Tax Credits
If your home improvements include certain types of energy-efficient improvements, you may be able to clam a tax credit. These improvements include insulation, windows and doors, water heaters and solar cells. Your credit is equal to 30 percent of the cost of installing the products up to $1,500. This is a credit rather than a deduction, which means that instead of reducing your taxable income, the credit reduces the amount of tax you owe.
Real-Estate Taxes
With home improvements usually comes an increase in the appraised value of the house, which leads to higher property taxes. Property taxes are deductible on your income-tax return. If you itemize your deductions, you can deduct the full amount of your property taxes. If you can take the standard deduction, you can add up to $500 for property taxes if you are single or up to $1,000 if you are filing a joint return. This provision is only valid through 2009.
Future Sale of Your Home
If you put money into improving your home, that increases the basis for determining whether you need to report any gain on the sale of your home. Your basis is determined by adding the price you paid for the home to the amount of money you paid to improve the home. If you lived in the home for at least two of the previous five years before the sale and the gain above the basis from selling the home is less than $250,000 if you are single or $500,000 if you file a joint return with your spouse, you do not have to pay any taxes on the gain.
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Read more: Home Improvement Tax Write Offs | eHow.com http://www.ehow.com/about_5325446_home-improvement-tax-write-offs.html#ixzz1AxBodSpK

7 Steps To Take Before You Buy A Home

Greetings Friends!

Happy New Year! I hope you have set your resolutions, and are sticking to them. I have many this year including getting back in shape, shedding a few pounds, and doing my best to assist more people with their real estate needs. 2011 has jumped off to a great start, with a few new clients, and a few new challenges. I was chatting with a client this week who is about to enter the process of buying their first home, and it became clear to me that many people don’t know where to start when they are considering a home purchase.

Here are a few steps to take before you begin the journey toward home ownership. Please don’t hesitate to contact me with any questions you may have, if you need to find a good lender, title company, home inspector, or anything related to the purchase of a home. Thanks in advance to the National Association of Realtors for allowing me to share this content with you and thanks for reading!

By: G. M. Filisko

Published: February 10, 2010

By doing your homework before you buy, you’ll feel more content about your new home.

1. Decide how much home you can afford
Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider costs every homeowner must cover: property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care if you plan to have children.

2. Develop your home wish list
Be honest about which features you must have and which you’d like to have. Handicap accessibility for an aging parent or special needs child is a must. Granite countertops and stainless steel appliances are in the bonus category. Come up with your top-five must-haves and top-five wants to help you focus your search and make a logical, rather than emotional, choice when home shopping.

3. Select where you want to live
Make a list of your top-five community priorities, such as commute time, schools, and recreational facilities. Ask your REALTOR® to help you identify three to four target neighborhoods based on your priorities.

4. Start saving
Have you saved enough money to qualify for a mortgage and cover your downpayment? Ideally, you should have 20% of the purchase price set aside for a downpayment, but some lenders allow as little as 5% down. A small downpayment preserves your savings for emergencies.

However, the lower your downpayment, the higher the loan amount you’ll need to qualify for, and if you still qualify, the higher your monthly payment. Your downpayment size can also influence your interest rate and the type of loan you can get.

Finally, if your downpayment is less than 20%, you’ll be required to purchase private mortgage insurance. Depending on the size of your loan, PMI can add hundreds to your monthly payment. Check with your state and local government for mortgage and downpayment assistance programs for first-time buyers.

5. Ask about all the costs before you sign
A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, attorneys’ fees, and transfer fees of 2% to 7% of the home price. Tally up the extras you’ll also want to buy after you move-in, such as window coverings and patio furniture for your new yard.

6. Get your credit in order
A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage.

You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion. Order and then pore over them to ensure the information is accurate, and try to correct any errors before you buy. If your credit score isn’t up to snuff, the easiest ways to improve it are to pay every bill on time and pay down high credit card debt.

7. Get prequalified
Meet with a lender to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements.

If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years.

Consider your financing options. The longer the loan, the smaller your monthly payment. Fixed-rate mortgages offer payment certainty; an adjustable-rate mortgage offers a lower monthly payment. However, an adjustable-rate mortgage may adjust dramatically. Be sure to calculate your affordability at both the lowest and highest possible ARM rate.

More from HouseLogic
Learn how Fannie Mae and Freddie Mac mortgages can help you save on financing

Learn more about the costs of homeownership

Other web resources
Homebuyer counseling resources

Get a free credit report from each of the three credit reporting bureaus

G.M. Filisko is an attorney and award-winning writer who has thrice survived the homebuying process. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Have You Noticed the Abundance of Empty Ketchup Bottles?

Greetings Friends:

One recent evening my wife, daughter and I were having dinner at one of our favorite haunts (the Cherry Cricket for those of you in the Denver area). The burger was quite good, but like many of you, I believe the addition of condiments can make a good burger a great burger. Anyway, I reached for the ketchup, and much to my dismay, it was empty. Now, I only mention this because it seems to be a regular occurence lately, not just at the Cherry Cricket, but at many restaurants we’ve had the occasion to pay a visit to in recent months.

We were actually discussing this over dinner (I know, exciting dinner conversation), and we came to the conclusion that maybe restaurants just aren’t filling the ketchup jar anymore because it’s a way they can save a buck here and there.

Of course, this got me thinking about real estate. Many of us feel the same way the restuarant does. We’ve been unsure about the economy, how long the downturn is going to last, and examining ways we can save a few dollars until things trun around. I don’t claim to have a crystal ball sitting in my living room that tells me the future, if I did I would have already won the Powerball, but from what I’ve heard many people think that 2011 looks a bit brighter in terms of the real estate outlook.

Interest rates are still down, home prices are at the lowest levels in many years, and foreclosures actually dropped for the first time in quite a while.

There’s still a large inventory of homes on the market, but as we see foreclosures drop that will eventually start to level out. New laws put in place to stop poor lending practices should also continue to ease the foreclosure trends that we’ve seen the last couple years. All these things should lead to a better real estate market, and a little more stability in home values than we’ve seen recently.

I wish I could tell you with more certainty that real estate is on the road to recovery, but the truth is, nobody knows the answer to that question just yet. Many economists predict that 2011 could be the year where we see the turn in values, that we’ve hit rock bottom, but we’ll have a much better idea after the few first selling months of 2011.

I have heard that the days of huge gains on home equity are probably gone for a while. When the market does turn, we can expect to see more modest home equity, more in-tune with inflation, at roughly 3% a year.

As a Realtor it’s my job to be optimistic about the coming year, and to share good news with you about what’s happening in real estate. As I’ve mentioned on this blog before, we need to stop listening to all the doom and gloom that’s constantly on the news, and make informed decisions based on something other than the 24/7 media.

The one thing I can say with certainty is that now is a great time to buy a home. Interest rates aren’t going to stay this low forever, people, and neither will home values. If you’re considering a move, take advantage of the opportunity you have now, and reinvest that tax return on an investment that makes sense.

As always, I will do my best to provide you with updated, relevant information about real estate as we move into 2011 and beyond. Please don’t hesitate to contact me with any questions you may have about buying, selling, home values, or with any other question you may need answered. I’m happy to help.

This will probably be my last post of 2010. Have a SAFE and HAPPY New Year! Speak to you soon!

7 Holiday Events That Better Your Community

Greetings Friends!

Given the fact that we are smack dab in the middle of the Christmas season I thought this article might be worth sharing. We could all use a little holiday cheer, and who better to celebrate with than your neighbors and local community! Ho, ho, ho! Merry Christmas!

• 

  Make friends and influence your property values by creating neighborhood holiday traditions that build community spirit. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Mortgage Rates Rise to 4.46% as Economy Lifts

Greetings Friends!

Unless you live under a rock I’m sure you’ve heard that mortgage interest rates hit all-time lows in November. Nobody knows exactly what’s going to happen with rates as we move toward 2011 and into the new year, so I’m paying particularly close attention to the trends at the moment. I’ll do my best to update this blog with the most current information as it becomes available. Here’s what’s happening now:

Rates on fixed mortgages edged up again this week after hitting their lowest level in decades last month.

Freddie Mac said Thursday that the average rate for 30-year fixed loans rose to 4.46 percent from 4.40 percent last week. Three weeks ago, the rate hit 4.17 percent, the lowest level on records dating back to 1971.

The 15-year loan also rose, to 3.81 percent from 3.77 percent. It hit its lowest point since the survey began in 1991 a month ago, when rates fell to 3.57 percent.

The brightening economic picture has reversed the direction of mortgage rates, which had been falling since April. Investors seeking higher returns are shifting money from bonds into riskier investments such as stocks.

As demand for Treasurys decreases, investors demand higher yields from the government. Mortgage rates tend to track those yields.

Those yields have risen from yearly lows as the economic picture brightened over the past month. They climbed again Wednesday after reports showed factories boosting production, auto sales rising, and many regions of the country seeing stronger economic growth.

The low rates have had a limited impact on the struggling housing market. The number of people signing contracts to buy homes increased for the third straight month in October, the National Association of Realtors said Thursday. But contract signings remained low after hitting a decade low in June.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

Rates on five-year adjustable-rate mortgages averaged 3.49 percent, up from 3.45 percent a week earlier.

Rates on one-year adjustable-rate home loans edged up to 3.25 percent from 3.23 percent last week.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount.

The average fee for a 30-year mortgage in Freddie Mac’s survey was 0.8 point. It was 0.7 point for 15-year fixed loans and 0.6 point for five-year and one-year mortgages.
The fees were unchanged from last week.

Read more: http://www.houselogic.com/news/articles/mortgage-rates-rise-446-economy-lifts/#ixzz17MfpMrcF

Home Sellers – Don’t Get Dis-Scrooged During the Holiday’s

Greetings Friends!

As you are well aware, the holiday season is upon us. For most of us this is a joyful time of year, even with the stress of shopping, shipping, cooking and entertaining. There is a select group of people that probably don’t enjoy this time of year as much as the rest of us, that’s the family trying to sell a home during the holiday season. In addition to everything we have to accomplish prior to December 25th, the seller also has to deal with keeping the house clean, buyers touring their home, and the thought that this isn’t a great time of year to sell a home in general.

I’m here to tell you, dear seller, don’t get dis-scrooged (discouraged) this holiday season. Take advantage of the benefits the season brings.

First, it’s not always easy to keep the house clean and tidy when you have Christmas presents to wrap, goodies to bake, parties to host, etc. Think of your home listing as a beneficial way to keep you ahead of the curve and ready for anything that comes your way. When it’s time to host your holiday extravaganza you won’t have to spend the day cleaning and preparing for guests, your home will already be party-ready. You have to bake holiday goodies for your daughter’s holiday bake sale? Good! A potential buyer might enjoy walking into your home for a showing and smelling the scent of fresh-baked treats.

If you’re in the middle of writing holiday cards to send to friends and family when a call for a showing comes through what do you do? This may seem like a huge inconvenience at the time, but use the time you have out of the house to finish that last bit of Christmas shopping, or take your cards to Starbucks and finish them there. Perhaps the change of scenery will inspire you to write memorable cards that won’t get shoved in a stack somewhere on grandma’s counter.

One sentiment I continue to hear from people during the holiday’s is that it’s just not a time when people want to make real estate transactions. Some don’t, but the 4th quarter of the year is generally the biggest quarter of the year in our office. We find that buyers who shop for homes during the holiday season are motivated to find a home and make the purchase now, instead of waiting for whatever unknown is holding them back.

This is a great time to showcase and highlight the key elements that make your home special. Put that Christmas tree in the front bowed window, put that large wreath above the garage, hang the stockings above your fireplace. Show your buyers what makes your home special this time of year, the warmer and more inviting you make it, the more they’ll see themselves around the tree with their family next year.

I wish you the happiest of holiday seasons. Please do not hesitate to contact me with any questions about buying or selling a home during this special time of year. I’m here to assist my client’s with any questions or needs throughout the month of December, and beyond.

Thanks for reading! Take care.

How Will Rising Interest Rates Impact Home Affordability?

Greetings Friends!

The information below was provided by Keller Williams this week and I thought it would be appropriate to pass it on to you! We all know that interest rates are at all-time lows, and they won’t stay that way forever. A lot of people are waiting for home values to drop even more before making a purchase, but the reality is now is the time to buy. Please see the blog post below written by Jay Papasan. He explains the current housing market nicely.

In a recent Forbes blog post, multimillionaire hedge fund manager John Paulson declared that today’s record-low interest rates made this the best time to buy homes in fifty years. “If you don’t own a home, buy one,” Paulson said. “If you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.” Why should we care what Paulson thinks? Well, he was among the few to accurately predict the subprime collapse and, while no one has a crystal ball, a closer look at the numbers supports his call to action.

Historically low interest rates are the key…and they aren’t likely to hang around for long.
As we wrote in SHIFT, buyers who “choose to wait until prices come down more” are gambling that interest rates will hold steady or drop. The truth is even a 10 percent drop in home prices is nullified by a 1 percent increase in interest rates. The figure below illustrates how this works for a $250,000 home purchase and the relative likelihood of each scenario.

To figure out which was a smarter bet–counting on home prices to fall further or interest rates to rise–our research department took the last ten years of monthly home price and mortgage interest rate data and ran the numbers to see which was more likely: an increase in mortgage rates or a further drop in home prices. Here’s what we found:

1.A one percent increase in mortgage rates is ten times more likely to happen than a ten percent drop in home prices.
2.A one percent rate increase more than offsets a ten percent reduction in home prices.
3.When interest rates fall by one percent, the total interest paid is almost three times more than the interest savings from a ten percent drop in home prices.
4.The probability of both happening at the same time is ridiculously small, and homeowners would still pay 15 percent more in interest over the life of the loan.

Interest rates have dominated the news in recent months as we’ve shattered record low after record low. Potential home buyers need to understand the positive financial impact low interest rates have on the cost of home ownership and the thousands of dollars that can be saved over the life of a typical mortgage loan. For those who can afford to buy, trade up, or invest, our current market presents a lifetime opportunity.

If you have any questions about this post please do not hesitate to call or e-mail me. I’m happy to answer any questions you may have. Thanks for reading!

Public Transportation Adds Value to Your Home

Greetings Friends!

I started my Monday by hitting the highway and driving south toward my rental property in Denver for a little check up. As I exited the highway and headed toward my place, I encountered a ton of construction on Federal Blvd. for the upcoming Invesco Field light rail station, and the light rail line that will continue west from Denver to Golden. The new light rail line will be within blocks of my rental property, and I’ve often thought that when it’s finished it will do wonderful things for my property values. It turns out I’m right.

One of many urban (and suburban) myths is that public transportation causes property values to drop and increases crime rates. In fact, just the opposite is proving to be true. Many cities across the country are creating or updating their mass transportation systems as a means to boost their local economies, to provide alternatives to expensive highway systems, and to reduce greenhouse gases.

A recent study by researchers at California State -Fullerton, found that homes located near light rail transit systems in Sacramento, San Diego, Portland and Santa Clara saw values increase between 2% and 18%. Even larger increases were reported in bigger cities with commuter rail systems. The studies also found that the existing socio-demographic makeup of the neighborhood is what drives crime, not its proximity to public transportation.

Although values vary greatly across the country, depending on state and metro area, generally it seems like public transportation, particularly light and commuter rail, are good for property values, and for you. If you have the ability to use public transportation you’re more likely to save money on fuel, and reduce your carbon footprint as well.

For those of us in the Denver area, some are blessed to already have these alternative transportation options near our homes, others are not. Us “north-enders” are waiting patiently for our time to come. It’s important to continue to support the expansion of these projects. Not only will it make your daily commute a little easier, you might also make a little more money when it’s time to sell your home.

Have questions about your home’s value? Drop me an e-mail or visit my website @ www.JodySellsHomes.com to find out what your home may be worth, or to search properties in your area. I’d be happy to do a free Competitive Market Analysis on your property and provide you with detailed market statistics that would be relevant to you.

As always, I welcome your feedback. Please feel free to drop me a note if you have any questions, or want additional information on this topic. Thanks for reading! Take care.

Finding Balance — NOW is a great time to buy a home

This last weekend I was spending some Saturday morning coffee and quality time with my daughter watching “boos clues”, that’s Blue’s Clues for those of you don’t have the pleasure of spending a lot of time with a two year old. The episode that happened to be on that morning was about finding balance, which got me to thinking about all the negative stuff I hear on the news these days.

Every time I turn on the news all I hear is negativity about the world. Floods in India, volcano eruptions in Indonesia, car bombs in Afghanistan, terrible HOME SALES in the U.S…I’ve decided to try to add a little balance to the negativity that is constantly thrust in our direction.

Granted, this post may be a little self serving, but if someone doesn’t start to share some good news we’re all going to go down in a blaze of doom and gloom.

Most of the information I’m about to share with you isn’t rocket science, heck, if you’re somewhat educated you can probably formulate these ideas for yourself, but I’ll share anyway.

Here are 7 reasons why right now is a great time to buy a home:
1. Homes have never been more affordable. Sure, your grandparents bought their first home for some ridiculous price in 1920, but those days are gone folks. The fact of the matter is that the median mortgage payment based on a percentage of the median household income is the lowest it’s been in a generation or more, which leads to a great market for first-time home buyers, investors, retirees looking for vacation homes, and the like. Prices won’t stay low forever, now is the time to capitalize on the market we currently have in place.
2. Mortgage rates are at 50 year lows, and won’t stay there forever. This is a pretty self explanatory point. Nobody seems to agree about when rates will start creeping up, but the one thing they do agree on the fact that it will happen.
3. Prices are starting to trend back up. Every major price index is pointing to an uptick in home values. After more than 30 straight months of declining values, home prices appear to be stabilizing or appreciating in the major markets. We may at or near rock bottom, the time to sit on the fence and wait is over!
4. Seller’s are motivated! As a buyer in today’s market you have lots of negotiating power, lots of choices and the ability to make more demands than you have in the past from your seller. As the market turns around these benefits will undoubtedly disappear and the seller will have more say about he will and will not accept as part of the transaction.
5. Lenders are back, and lending money again. Contrary to what you may have heard, the majority of the financial crisis has passed and lenders are providing loans once again. It is true that you may have to provide more documentation these days, but chances are if you have a job, and can afford the payment you may be able to qualify for a home loan.
6. Ownership costs have dropped below rental costs. The recent downturn led to a decrease in both rental and ownership costs, but as of now, the cost of renting is rising at a sharper rate then the cost of home ownership, and you’re not throwing money down the toilet every month. Think about that while you’re in the shower tomorrow.
7. Home ownership remains at the core of the American dream. The most recent studies show that home ownership is still an important factor in most of our lives. Home ownership is critical to financial stability and wealth building, and it provides a solid asset and a place to live and raise a family.

Many economists saw the decline in home prices coming for quite a long while, especially with the expiration of the tax credit earlier this year. Don’t be scared off by what you hear in the media. We all need to do our best to understand the biases which we hear everyday on the TV, radio and internet. Let’s find our own balance, and tune out the negativity.

As always, I appreciate your feedback, and welcome any questions you may have. Thanks for listening!