Lehigh Valley Home Buyer - Is Now The Time To Buy?

Is now a good time to Buy a Lehigh Valley Home? This is a common question in today's economy. If you have been considering buying a home what should you do? Should you wait?

As a possible Lehigh Valley Home Buyer you may be considering purchasing a home but you don't want to purchase today and find out a year from now that your home has gone down in value. Is this a possibility?

You bet but each situation is different. When I purchased my second Lehigh Valley Home in 1999, I have to be honest and admit I didn't look to see if home prices were going up or coming down. We had two children and my wife was pregnant with our third. It was time to get a larger house. It didn't matter what the market was doing. It was time to move-on. My family was growing and we needed a larger home.

We purchased a home in Bethlehem Township, paid $5,000 less than the asking price, and had an interest rate of 8.375%. We also didn't get a check from the government for $8,000 (Stimulus Bill) as a gift for purchasing the home. None of it mattered. We needed a larger house. We did refinance in 2003 to get a 6% interest rate.

Fast-forward to today's market. What do we know:

• Home Prices have been declining
• Buyer's have been sitting on the fence for almost two years
• Interest Rates are at an all-time low (around 5%)
• Seller's are more willing to negotiate (price and terms)
• Government is giving $8,000 as a gift to First Time Home Buyers (or a buyer who hasn't owned in at least 3 years)
• Foreclosures and Short Sales have increased (a good buy?)

At some point, the dam is going to burst. There are way to many potential home buyers out there that are watching and waiting. What are they waiting for? The bottom!

The problem is that no one will know that Lehigh Valley Real Estate has reached the Bottom until AFTER it happens. All of a sudden, prices will start to increase and then we know that the bottom was missed. 

Lehigh Valley Home Buyers that have been waiting will probably make a mad dash to purchase. The law of supply and demand will kick-in and interest rates may go up. If it happens after December 1, 2009, the $8,000 tax credit for First Time Home Buyers will no longer be available and the sellers may not be as willing to negotiate.

A 1% increase in the interest rate offsets a $10,000 decrease in the home price. Should you continue waiting to purchase a home?

One of the problems, in the past couple of years, is that homes became a source for a quick investment.
YOUR HOME should be considered a Long Term Investment. It is going to be the place where you live and possibly raise your family. The fact that it will eventually grow in value (real estate always goes up long term) is a consideration but is it your main consideration? Isn't your life and your family the main factor?

All of the signs are pointing at this being a great time to purchase a home. How long should you wait?

Visit www.lehighvalleyhomebuyer.com for more information about purchasing a Lehigh Valley Home.