- Buy a home now -- you'll get a great deal!
- Don't buy now -- house prices are dropping, you'll do better later
Bombarded with all of the contradictory opinions and data regarding the housing market, what's really going on? Those who may have thought they "missed the boat" are finding the boat has not left the dock yet; but there are always two sides to every story. According to an article from the Chicago Tribune in Sunday's newspaper, this is some information I found on this topic:
5 Reasons to Buy Now
- There's a vast selection. Although home prices have dropped since 2008 there are still nearly 85,000 houses, condos and town homes listed in early May.
- Homes are on sale. Illinois has climbed to 10th place among states with the highest home-price declines. The median price in Chicago is $194,000 down 22% from the year before; in September 2005 the median was $270,000.
- We may be near the bottom of the market decline. You have to ask yourself, "can you rent for the same amount and have the same quality of life over a period of years."
- Uncle Sam is feeling generous. First-time home buyers (or those who haven't owned a home for at least three years) and close by December 1st are eligible for a tax credit.
- Mortgage interest is on sale too. Fixed-rate loans are holding steady at about 5%.
5 Reasons to Wait
- We're not at bottom yet, and prices will fall further. Illinois placed fifth in the nation among states with the highest filings in the first quarter of 2009.
- You need to stay in the house a number of years. The days of a "quick sale" are mostly gone so be ready to stick around in order out on top financially.
- It's hard to keep up with a mortgage when you're unemployed. Illinois' unemployment hit 9.1% in March (highest in about 24 years).
- Renting isn't a crime. Landlords are bending over backyards to have a renter with income.
- Financing is more complicated than it used to be. Standards are considerably tighter than before requiring higher credit scores and larger down payments.
