Buying a home may be the best move you could make if your job is stable. Whether you are recovering from a divorce, a first time home buyer, or want to trade up or down buying a home may make sense for you. Here are four reasons to why 2009 might be a good year to buy a Metro Detroit home.
1. 2009 Tax Credit. President Obama has signed into law a bill that will give you the home buyer a $8000 tax credit. If you are buying a $100,000 house you basically are getting another 8% off. I was out looking at Ypsilanti foreclosed homes last week with a client. There were 2000 square foot colonials that were selling for $100,000. These homes were selling for $200,000 plus a few years back. Now you can buy some of them for as little as $100,000 and then get $8000 tax credit from Uncle Sam. That is a great deal. I am seeing good deals in many different cities. In Livonia, ranch homes that sold for over $150,000 are being sold for less than $100,000. There are a few rules for the new home buyer tax credit but you can read about more in-depth on another page.
2. Large inventory. There is a big inventory of Metro Detroit foreclosures and homes. Many people can not qualify to buy a home for at least 3 years after they have lost their home to foreclosure. What that means to you is that there are more homes available for less home buyers. You have your choice and not as much competition. But don’t get fooled. Good homes priced reasonably will sell sometime in less than a week. Sometimes even for more than asking price.
3. Low prices of Metro Detroit Homes. A few years back home prices were skyrocketing. Many home buyers were being priced out of the market. It was not unusual for metro Detroit homes to be worth $200 a square foot. You couldn’t find a home in decent neighborhood for less than $120,000. Now all of that has changed. Those same homes are selling from $50,000 to $$80,000 now. Even the ultra mega mansions have suffered. A few years back they were going as high as $400 to $500 a square foot in the most exclusive subdivisions. Now some of them have dropped to below $200 a square foot. There are bargain foreclosures everywhere. A home that you could not afford a few years back is now within your reach.
4. Interest Rates are still historically low. With rates in the 5 – 6% range many people can afford a home that they could not afford 4 years ago. Many new home buyers could not afford their first home. Now with the same low rates combined with the lower home prices many first time home buyers can buy now.
So if you are thinking of buying a home 2009 should be your year. Why turn down a $8000 gift from your Uncle Sam.
Start searching Metro Detroit Home for sale today. But be sure to get pre-qualified from a mortgage lender as many rules have changed in the last few years.
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