5 things to think about as we head into 2010!

As you know, the real estate environment has changed and we are charting new territory everyday with new lending regulations, never-before available tax credits and historic levels of affordability. As we close out 2009, here are 5 things to keep in mind as we enter a new decade!

1. Historic Interest Rates - There has never been a better time to buy a house. The mortgage interest rate is a key determining factor in what the home will cost you over the term of the loan. That is why, even though prices may still recede another 10%, a person should probably buy now instead of waiting and trying to time the bottom of the housing market. If prices drop another 10%, but interest rates increase by 1% point, that would mean the same monthly payment today versus waiting. If you have a steady job, good credit and money for a down payment, you are truly being offered a gift of a lifetime!
2. Homebuyer Tax Credits - Up to $8000 for first-time homebuyers and up to $6500 for current homeowners having lived in their current residence for the last 5 out of 8 years. But don't wait too long - you must be under contract by April 30th and close by June 30th.
3. Changes in the Settlement Process - No more last-minute changes to the HUD statement and certain changes will necessitate closing 3 days later. How does this affect you? Your closing date may be a moving target and back-to-back closings on separate properties may be a thing of the past. More to come on these new restrictions next month.
4. Real Estate as an Investment - Wealth is built by purchasing real estate at the right time, right price and right terms. While your current house may have lost value, keep in mind that your dream house may have lost a similar percentage of value as well - thus making it more attainable. In the future, when prices begin to appreciate again, the additional equity in the larger home will increase the family's net worth.
5. Use the Davenport Plageman Team for all your real estate transactions!