For those who have been considering buying a house, the month of April is shaping up to be the best time to do it. In fact, those who purchase a home in April are poised to save thousands or possibly tens of thousands of dollars when compared to those who wait until May. Therefore, for anyone who has been thinking about purchasing a home, April is the month to make it happen.
There are many reasons to seriously consider purchasing a home in April, but perhaps the biggest is the Home Buyer Credit. For those who qualify, the program can provide up to $8,000 worth of tax credits. Although the program has been extended through the month of June, homebuyers need to sign a purchase contract by the end of April in order to receive the credit. Since most buyers take several weeks to find the perfect home and to have their offer accepted, it is essential to get started right away.
The cost of buying a home is another reason to consider making a purchase in April. While no one can say for sure when the prices will hit rock bottom within any housing market, most experts agree that the majority of markets will bottom out in April. Therefore, buyers who wait until May or later to purchase a home may find themselves paying far more for a home that could have been purchased for less in April.
The low interest rates on long-term mortgage loans provides yet another reason to purchase a home in May. For the last several months, long-term mortgage loan interest rates have hovered around the 5% mark. In fact, recent rates have been below 5% for several weeks in a row. These low interest rates were brought about by mortgage backed securities, but the Feds have recently put an end to this program. As a result, most experts predict long-term mortgage loan interest rates will be up to around 6% by the end of the year.
While no one should purchase a home if they are not prepared to take on the responsibilities of homeownership, those who are ready to take this big step should give some serious consideration to doing it in April. Thanks to the Home Buyer Credit, low housing prices and low interest rates, the savings can be quite substantial and we aren't likely to see this perfect storm of circumstances any time in the near future.
Eric Bramlett is the broker & co-owner of One Source Realty, an Austin real estate brokerage. One Source Realty helps select clients find central Austin real estate, as well as Steiner Ranch homes for sale. Eric enjoys working with select clients, helping his agents succeed, and relaxing at the lake with his wife & dogs.
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