More Homes are Selling!

The recent transformation of low interest rates has put a good market for buyers into  a great buyers market.  According to the president of Idaho Central Credit Union, the rates are not only at the lowest in 37 years, it is coupled with bargain pricing, great inventory and on top of  it all the$7500 tax credit being offered by the government for first time home buyers. Some pricing in our market is at 2001 levels. With rates at 6.5% in October, it was a good market, however with rates well below 5% it is a GREAT BUYERS MARKET.  One thing to take into consideration is that the tax credit is an interest free loan, payable in portions through 2010.

If you choose to gamble on waiting this market out, you may find yourself gambling yourself right out of the market. While the bottom is definitely hard to find, some believe
with lower interest rates, buying now is not a gamble.

What most people don’t understand is the impact that interest rates can have on the monthly costs of home ownership. For example, a ten percent drop in home prices is nullified
by an increase of one percentage point in interest rates
on a conventional thirty year mortgage.

Interest rates are at a historic low , with conventional thirty year rates at 4.75% and investor rates at 5.5%. With prices as low as they are, you will find a good bargain if not great in almost all markets. Make surethat you do all your homework and look at the highsand lows in the area, area schools and amenities as well as pricing trends in the last month. All these put together
will show you whether or not your home is a good buy.

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