Morrow County, Ohio Real Estate

As I work daily in this businees, it has become clear to me that too many people still don't understand the position that they've been afforded by our present economy.  As a result of the current economic environment, the home buyer (especially the first time home buyer) is in an EXCELLENT position to buy now, build equity over the next few years, and take advantage of historically low interest rates, first-time buyer tax credits, and mortgage interest and property tax deductions on income taxes.

The Mansfield Board of Realtors has published an excellent article highlighting the reasons to act now and I reprint this article below.  Although the statistical info is for the Mansfield, Ohio area, the trends illustrated hold true for most of Ohio as well.

July 28, 2009

(1) Should I Buy a Home Now, or Wait?

Will prices get better if I wait? Will mortgage rates be lower if I wait? Will I have a wider choice of homes to buy if I wait?

The average home price in the MLS of the Mansfield Board of REALTORS® has fallen by 30% over the pastyear. As the number of homes for sale increases (see question #3 below), that will create lower home prices. This won't always be true. The inventory will eventually go down. It may not happen over night,but it will happen.

In a recent Baylor University survey, 8 of 10 economists agreed home prices will rise in the next 5 years. So will rental costs. Do you want to capture the advantage of equity build-up...or collect "throw-away" rent receipts?

(2) Will mortgage rates be lower if I wait? 

Today's mortgage rates are near 50-year lows. They are at bargain levels. But if you've never bought a home before, you just don't realize the "borrowing power" of today's low rates (unless your parents, friends, or other relatives told you). You don't have to pay 15% for a home loan, as you did in the early 1980s, or 7%-to-8% in the 1970s and 1990s. Today they're between 5-6%. That's all. But when inflation returns, you can "kiss goodbye" mortgage rates under 7%.

(3) Will I have a wider choice of homes to buy if I wait? 

As of June 30, 2009, there were 1,734 homes for sale in the MLS of Richland & Crawford Counties. One year ago that number was 1,578. Two years ago it was 1,149. The trend in the number of homes available is definitely going up. The higher the inventory, the less demand for higher prices. So, should you wait for a narrower choice? More homes on the market = lower selling prices. So, do you want to buy low (now), or buy higher (later)? Seems like now is a great time to buy!

Bonus Question:

Is there any particular reason, as a First-Time Buyer, why I should buy now?

Yes.  Until Nov. 30, 2009, first-time buyers are eligible for a "federal tax credit" up to $8,000 on the purchase of a home. Pure credit. Not repayable. Anyone who hasn't owned a home in the past 3 years may be eligible, if they meet income limits --- single buyers, $75,000 a year; married couples $150,000.

The credit decreases for single buyers earning between $75,000 and $95,000, and between $150,000 and $170,000 for home buyers filing jointly. If you finance your home through FHA, you may use the tax credit money to help pay for down payment or closing costs. You may also be eligible for further tax credits through the Ohio Housing Finance Agency.

If you've been sitting on the fence, now is the time to get off that fence. Arm yourself with the facts, and join the 75 million homeowners nationwide who enjoy the benefits of home ownership (equity build-up,home appreciation, tax advantages, and pride of ownership).

 Call your REALTOR®. He or she knows (a) local market home inventories, (b) homes values, (c) lending programs, (d) first-time homebuyers tax credit program and (e) everything else to help you make a housing choice...TODAY. It's time to...Get Off the Fence.

 MANSFIELD BOARD OF REALTORS®

So if you've been giving ANY thought to buying a home, contact a local Realtor now and he or she will walk you through the process.