Friday, April 24, 2009

3 Reasons Why it's a Great Time to be a First Time Homebuyer in Bucks County

Oh, I know Realtors get a bad rap for the constant refrain, "Now's the time to buy!" but in all honesty, conditions are coming together to create a perfect opportunity for first time homebuyers to buy a home in Bucks County.

1. Inventory is HIGH, Prices are DOWN, Sellers are REASONABLE

As of today, there are 1,440 residential homes for sale in Bucks County priced under $300,000. Within that inventory, there are singles, townhomes, condos, historic farmhouses, etc. Year-to-date median price for Bucks County homes has gone from $292,000 in March of 2008 to $260,000 in March of 2009. Sellers know what the market is like, and we're seeing fewer and fewer homeowners pricing their homes at peak pricing. Reality has set in, and Sellers have made adjustments to their expectations.

2. $8,000 of Free Money from the Government

I'm sure you've heard of the First Time Homebuyer credit that was included in the stimulus bill signed in February. As of right now, you must settle on your new home before December 1, 2009 in order to qualify. For more information on the tax credit click here.

3. Interest Rates are REALLY Low

As of Tuesday of this week, FHA mortgage rates were at 5% with 0 points and a FICO of 620 or higher. Because you only need to put 3.5% down on an FHA loan, we are seeing a re-birth of this product...and the rates were at FIVE PERCENT. Just to give you a point of reference, when I purchased my home in 1998, we paid 7% and that rate was considered "good." We re-financed in 2003 and paid two points to get 5% and I distinctly remember saying to my husband, "Oh my God! We'll never be able to touch this interest rate again in our lifetime!" Here we are 6 years later, and we're at 5% with 0 points for FHA. Unbelievable.

If you think you might be interested in starting a home search, please don't hesitate to contact me. I also have a snazzy new website where you can search listings, and also sign up for "Daily Listing Alerts" where you'll get an email every day of the properties just hitting the market.

Interested? Just click the button and register!

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