In past posts, I've written about how now is a great time to buy real estate in Rockland County, despite the negative headlines about the economy and the housing market. Real estate is a local marketplace. To understand the market where you live, you need to analyze local market data. I thought it would be helpful to provide insight from a respected local mortgage banker as to why he believes now is a favorable time to purchase a home in Rockland County. The following is from Bruce Salik, VP/Branch Manager of Metrocities Mortgage in New City, NY.
As home prices become increasingly affordable in Rockland County, buyers should ask themselves "is now the perfect time to buy"? The answer is "yes" for a few reasons. First, as part of the recently passed Government Bailout Plan, first time homebuyers can receive up to a $7,500 tax credit if they purchase a home before June 30, 2009. Although this credit has to be repaid over a number of years, it makes the first years of homeownership, traditionally the most difficult financially, easier to afford.
Additionally, over the past five years, mortgage interest rates have been more favorable in November and December in comparison to October. Rates have fallen in November and December in every presidential election since 1992.
Some buyers may be inclined to wait until next spring, anticipating a decrease in prices. But what would happen if rates move higher? Let's say home prices in Rockland County drop an additional 3%, but interest rates rise by ½%. In this example, a $400,000 home would cost $44.00 less per month today!
No one can predict what interest rates will do. If we follow the trends in the last 5 years and the last 4 elections, rates should remain low at least until the end of the year.
jennifer mallory | associate broker | "real integrity in real estate"
keller williams hudson valley realty | 18 laurel rd, new city ny 10956
845.521.3135 | 845.323.6247 mobile | www.jennifermallory.com