BUY NOW!! – Home Prices at 50 Year Low*

I saw an interesting blog post today by Alan Barker.  It was fairly brief but included a chart from Case Shiller showing that median home prices adjusted for inflation are at their lowest point in 50 years.

WOW!!

Although Alan didn’t say so in his post I will say it here.  This is the “perfect storm” for first time homebuyers.

Low Prices, Low Interest Rates AND the government will give you another $8,000 if you place a contract on a home by 4/30/10 and close by 6/30/10 under the First Time Home Buyer Tax Credit.

When I bought my first house in 1983 the interest rate was 12.5% and the government was not giving me an incentive.

Listen to me.  If you are a first time homebuyer and have the ability and desire to own a home DO IT NOW!!  Maybe you don’t have the down payment – ask a family member for a gift, all they can say is no.  A very large percentage of first time homebuyers (including myself) get the down payment from what we in the industry call “the bank of mom and dad.” It only requires 3.5% of the purchase price as a down payment on an FHA loan – that is $7,000 you need for a $200,000 home.

Closing costs?  Find a home where the seller is paying most or all of them.

This is truly for first time buyers a once in a lifetime opportunity.

Just so you don’t think I am fibbing, here is the chart prepared by Case Shiller that appeared on Inflation.us showing the price of homes as adjusted by the CPI (inflation) -

* – after adjustment for inflation