Now is a Good Time to Buy a House - 2009 Update

Should I buy a house now or wait until later? This hasDuring the week of June 8, 2009, the average rates
always been a common question among first-timeon a 30-year fixed mortgage reached their highest
home buyers. But with the uncertainty of our currentpoint in seven months. Nobody has a crystal ball, of
economy, this question becomes even morecourse, but many economists expect rates to
important. In truth, nobody can answer this questionexceed 6% by the end of this year (they were
for you. It's up to you, the home buyer, to decidearound 5.3% at the time of this article). Rising rates
whether or not it's a good time to take the plunge.are another good reason to buy now instead of later.
Five Good Reasons for Buying Now4. "First-time" home buyers who have not owned a
Should you buy a house now, or wait until next year?home in the last three years can still qualify for a tax
Here are five things to consider when making thiscredit on their purchase, up to $8,000. Currently, this
important decision.program is set to expire in December 2009. So it's
1. In May 2009, housing starts rose by 17% overyet another reason to buy a house now, rather than
April. This surprised many economists, who were notlater.
expecting such an increase. This rise in housing starts5. Prices are still relatively low in most cities across
(new construction) indicates rising confidence withinthe United States, but this may soon change. The
the building industry. This kind of trend usuallypositive signs mentioned above will be bring more
coincides with housing recovery in general.buyers into the market. This will eventually reduce
2. Many economists are saying that the housingthe huge surplus of homes for sale, which in turn will
market has reached bottom in many parts of thedrive prices upward once again.
country. In other cities, prices are still falling but areHere's what it all boils down to. Only you can decide
expected to reach bottom in the near future. Thisif now is a good time to buy a house. You need to
means that buyers could get into a home at "rockreview your finances and establish a budget, before
bottom" prices, and without losing any further valueyou can answer this question with any certainty. But
after the purchase.there are plenty of good reasons to buy a home
3. Mortgage rates have been at record lows forsooner, rather than later. So give it some serious
several months now, but they are starting to rise.consideration!