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The Best Time to Purchase a Home in Austin? Now!
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by: Tina.Walker
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Word Count: 656
Though
many news outlets report that the economy is at its weakest point
since the Great Depression and daily stories about the credit crunch
appear in the headlines, now is actually the best time for those with
good credit to buy a home in Texas. The state of Texas is faring
better than much of the country during this financial storm. Though
U.S. unemployment is at 6.1%, Texas accounts for 54% of job growth
over the last 12 months. Indeed, the Texas economy, and the Austin
economy in particular, is strong compared to other areas of the
country. Though potential homebuyers may be inclined to wait to buy a
home in Austin, now is actually the best time to purchase property in
the area.
Here
are some things to consider when approaching the Austin real estate
market as a buyer:
Everyone
likes buying items on sale. This is the time to buy a home, allow it
to appreciate, and sell it when the economy improves. With a new
President taking office in January and the chance for the $700
billion dollar bailout to kick in, there may be a higher number of
homes sold in Texas in the summer of 2009 compared to the summer of
2008. If sales volume does gain momentum this coming summer, then
now could be the bottom of the Austin real estate market. This could
possibly be the best time to find a deal on an Austin home.
Since
the stock market is not doing well, real estate has become the way to
invest and leverage money. While the stock market is quite
unpredictable, home prices in Texas are sure to rise again. When they
do, you will have a property you can sell for more than what you paid
for it.
Interest
rates for home loans are low, with many hovering around 6%. The real
estate market is often one with a future that is difficult to
foretell, but some are predicting that interest rates will increase
by at least 2% by this time next year. This is the time to lock in a
low interest rate.
Though
there are numerous news stories focusing on the “credit crunch,”
money still is available. For potential buyers who live within their
means, have maintained a high credit score and are not over extended
credit-wise, loans are available.
For
first-time home buyers, there is an added benefit in buying now. If
you close on a home before July 1, 2009, the Housing and Economic
Recovery Act of 2008 authorizes a tax credit of up to $7,500.
Since
many people have placed their homes on the market, inventory is high.
As of November 2, 2008, there were 3,957 single-family homes for sale
in Austin, Texas. With more properties to choose from and with each
home being on the market for a longer period of time, buyers have a
definite advantage.
Federal
Housing Administration (FHA) has made changes to their home loan
structure, and now loan limits have increased. In addition, there is
a low down payment option. This means buyers can obtain an FHA loan
with 3% down. In Travis County, the loan limit is over $288K. This
gives buyers in Austin more flexibility.
Tuning
in to the headlines each day may make buyers feel it’s best to wait
to purchase a new home. In Austin, and in Texas in general, the
economy remains stronger than other areas of the country. For buyers
with secure employment, a good credit history and the ability to live
within their means, the best time to buy in Austin is between now and
the summer of 2009.
About the Author
Ben Hamilton. The Austin Institute of Real Estate provides online real estate classes, correspondence real estate classes, and live real estate classes for credit towards a Texas real estate license.
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