Buyers – It’s Time to Jump Off the Fence!

Yes, the time has come to jump off the fence and into the Truckee real estate market and the Tahoe real estate market. There are many reasons why “fence-sitters” should consider that now might be a really good time to shop for the mountain home they have been dreaming of.  If you have good credit and a good job, do you really want to take the risk that interest rates may raise and that Congress may let the tax credit expire? Let’s look at the facts:

• Currently mortgage rates are amazingly low.  This may not last.
  • The Federal Reserve has been buying up mortgage agency debt and mortgage-backed securities in order to keep mortgages available and hold down interest rates.
  • But, as the economy improves, there are no plans to buy any more past March 30, 2010.
  • Thus, the most likely result will be that rates will rise.
  • And, rates should naturally rise even just as a result of a recovering economy.
• The home buyer tax credit expires on April 30, 2010.  It may not be renewed a second time.
  • First-time buyers get up to $8,000.  (If you haven’t owned a home in three years, you qualify as a “first-time” buyer.)
  • Buyers must sign a purchase contract by April 30, 2010 and close escrow by July 1, 2010 to qualify.
  • Move-up buyers get up to $6,500 when purchasing a new primary residence.
• Inventory of homes on the market is lowering in our area (Truckee real estate market and North Lake Tahoe real estate market) and there are indications that prices could be at or near a bottom.  And, if inventory continues to lower, we may actually see prices rise a bit.

So, with these facts in mind, do you really want to take the risk that interest rates could raise and home prices could increase? As we know, life can be a gamble sometimes . . .