Is Now a Good Time to Buy My First Home?
May 28th, 2009 by Peter Frumenti | no responses
Search by city to find homes for sale listings and real estate information in Fremont, Newark, Union City, and Hayward, California. 510-770-1475
Frumenti Real Estate Team | California East Bay Area Homes for Sale
Highest Rated
- Foreclosures make excellent opportunities to buy Bay Area Homes
(4.67 out of 5) - Newark CA One Bedroom Condo With Den Coming Soon
(4.60 out of 5)
- Foreclosures make excellent opportunities to buy Bay Area Homes
Click stars to vote (left is low, right is high)
(1 votes, average: 5.00 out of 5)
Loading ...
I am asked on a daily basis lately whether now is a good time to take the leap and buy a first home…Just a few years ago prices were so high that for many first time buyers it was just not possible. Buying meant scraping by every month to make the house payment which was in some cases twice what they were paying in rent previously. Today that is just not the case. With single family home prices in many bay area cities now starting in the high $200,000’s buying has finally become more affordable.
We recently sold a $350k home in Fremont. The buyer utilized FHA financing and put 3.5% down and their payment including taxes and insurance was lower than the $2200 a month the previous renter was paying to live in the same house!
Other examples include a nice 2 bedroom condo with granite counter tops and maple cabinets for $150k in Fremont… so with the same FHA financing and 3.5% down from parents at current interest rates the payments including hoa and taxes are around $1000 bucks a month for that buyer. They are renting a room out for $500 and living in their own place for $500 a month!
The best part of all of this is that both of the buyers above are eligible for the stimulus bill created 2009 $8000 tax credit. For more information on that visit the article I wrote entitled: The Government will give $8000 for Firt Time Buyers to Buy.
In addition to all of this, most homeowners get to write off their mortgage interest and property taxes as a tax deduction. Saving them thousands of dollars every year in taxes. The best part about buying in a market like this is that if you get into a situation where you are unable to pay your mortgage you are likely able to rent out your home for more than your monthly payment including, taxes, insurance and hoa and in some cases can even make a monthly profit.
Currently the number of homes for sale or supply vs the number of homes pending or demand are at similar levels to 2003. In 2003-2005 we saw huge appreciation because the supply was so low and with the demand so high prices were being bid up well beyond asking price. We are starting to see this again in the Bay Area.
So the answer to the question I am asked all so often these days is: Yes! I do believe now is a good time to buy. I do not think you should buy planning on appreciation or expecting to make a fortune in real estate in the next 12 months. I do not think speculation is what first time home buyers should be doing in this real estate market. I simply believe that if you are paying rent somewhere you need to look at your options and see if you might save money by buying. In my opinion it just makes sense.
Don’t let this market pass you by…For more information feel free to comment on this article. You can also email me peter@frumentiteam.com or call the office at 510-770-1475. We are always here to answer your questions.
Share This – Instructions included
The Author: Peter Frumenti
About: A Tri-Valley native, Peter comes from a long line of real estate professionals: his grandfather, grandmother, and father have all served in varying capacities in the real estate industry. Formerly a director of sales and marketing in the hospitality industry, Peter has a strong sales and marketing background, which has served him well at both Keller Williams and Century 21. When Peter is not buying or selling homes for his clients, he serves as a board member for the Viola Blythe Center, a non-profit organization that provides social and humanitarian services. He is active in a number of Tri-City community organizations, as well. Peter serves on the agent leadership council for Keller Williams Benchmark Properties and is a member of the National Association of Realtors and the California Association of Realtors.
This entry was posted by Peter Frumenti, on Thursday, May 28th, 2009 at 8:56 am and is filed under Home Buyers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response on the right, or trackback from your own site.
Leave a Reply
Frumenti Real Estate Team | California East Bay Area Homes for Sale
Search by city to find homes for sale listings and real estate information in Fremont, Newark, Union City, and Hayward, California. 510-770-1475
