Is Now a Good Time to Buy a Home in the U.S.?

Is Now a Good Time to Buy a Home in the U.S.?

There has been news about declining home values almost daily for the last few years. If you are a homeowner, you are likely “under water”, meaning your home is worth less than your mortgage balance. If you are a prospective homebuyer, with the decline in home values, there are some real bargains if you look around. http://finance.yahoo.com/real-estate/article/107100/What-Will-400,000-Buy-Today

The article shows what $400,000 can buy in different cities throughout the United States. $400,000 is about $13 million Taiwan dollars. With a 10% down payment, monthly mortgage payments would be about $2,000, excluding taxes, insurance, points and fees. 

In addition, first time home buyers may qualify for up to $8,000 first time homebuyers’ credit. This is a refundable credit meaning even if you do not owe any tax, you could get up to $8,000. There are other requirements such as income and living in the home at least 3 years. 

So is now the right time to buy? I think if you find a home you plan to live in for the next 5-10 years and you can stomach a 5 -10% drop in value, then go for it. If you are the kind of person that reads the news daily and will cry themselves to sleep thinking about the declining home values, then you should keep renting. 

This Wall Street Journal article examines whether a home is a good investment. The answer is no. http://online.wsj.com/article/SB124336746233955539.html

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