Is The Market Right For First Time Homebuyers?

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Now that the real estate market has fallen into a post-bubble era, first time homebuyers are wondering if this is the perfect time to buy. The short answer is yes, this is the perfect time to buy. I say this because home values and prices are finally declining to affordable ranges, allowing first time buyers to get back into the market.


With the fallout of the mortgage crisis and the steadily cooling real estate market, inventory levels have risen to record levels. As a result, the market has shifted to a buyer's market. This has also allowed artificially inflated home prices to deflate to normal price levels.

For first time homebuyers, this is the sign that it is a great time to buy. First time buyers have the advantages of wide inventories to choose from, lower home prices, and sellers who are desperate to unload their properties (often at discounted prices with fantastic incentives).

However, there are a few roadblocks getting in the way of first time homebuyers. For instance, lending standards have gotten significantly tighter since the influx of foreclosures and defaults. If a first time buyer doesn't have stellar credit, it may be very difficult to obtain a conventional mortgage.

One option to detour this problem would be to find a seller offering owner financing. Owner financing, also called seller financing and subject-to financing, is essentially when the buyer assumes the seller's existing mortgage, where the buyer typically puts some money down and then continues to make monthly payments on the home until they find a standard mortgage. Try websites like Butterflylister.com to find properties being sold with the owner financing option.

Lastly, there is always the fear that home prices will continue to drop. Buyers sometimes will try holding out until prices reach their lowest point. However, these buyers often miss out on great opportunities because they think prices will go lower. And, if you plan on owning the home long-term, price appreciation over the next few decades will make holding out for lower prices pointless.

As a result, my advice to first time homebuyers is to jump into the market, the conditions are right and you may find yourselves a fantastic deal.

 

Muhammad Siddique is Real Estate Investor for  years mostly in commercial real estate specially shopping centers, hotels, motels and recommends TRCBVideos.com to convert aticles into Videos automgaically.

 

You should follow me on twitter here or  go http://twitter.com/siddiquem

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