We are now consistently seeing the signs that the housing market is making a comeback. Have we really bottomed out? It is too early to tell--you never know for sure until it is past. But, we do know that we have seen month over month increases in sales. New home sales were up 11% in June in spite of the ongoing foreclosures out there. Some purchase incentives are drying up as communities begin to sell. Resales are up too--not just distressed properties. These are all good indicators that pent up demand is moving to the market.
How many people are waiting to know for sure if we have hit bottom? Quite a few I am willing to bet. But--here is why you should not wait:
1) Prices are as low as they have been since before the real estate "boom"
2) Interest rates are great but will go up. A 1% increase in interest rate will offset 10% in depreciation!
3) An approved and ready to purchase buyer be able to take advantage of an opportunity as soon as it comes up.
4) You get equity and tax benefits immediatley and you are not wasting money on rentals. The First Time Homebuyer Tax Credit is set to expire December 1, 2009--not the end of the year.