Real Estate Buying Window is Closing

I have spent a good deal of time lately reading news articles and looking at market data getting ready to plan for 2010. Out of this research one thing has become painfully clear to me; now  is the best window of opportunity I believe I have seen in my 30 years as a REALTOR to buy a home. My concern is that I see this window slowly closing with each passing day.  So why do I believe there is a window and it’s beginning to close?

If you take a step back and look at the market, all you have to do is ask yourself 3 simple questions: 1) Do you believe prices will drop much further over the next 6 months (personally I don’t believe so)? 2) Do you believe interest rates (now right at or just below 5 percent) will go lower than they are right now (personally I don’t believe so). 3) Do you believe that there will be more or less inventory of homes to look at over the next six months (personally I believe there will be less)?

Add to this the following reasons: 1) The tax credit that is available to first time homebuyers and now even to people selling their existing homes and buying another one. 2) There is talk about raising the FHA minimum down payment from 3.5% to somewhere in the neighborhood of 5 to 10%. 3) There is also talk about raising the minimum credit score needed to obtain financing.

When you add all of this up, the window begins to look like a huge green light telling buyers to RUN not walk to your nearest REALTOR and get in on this once in a lifetime buying opportunity. It won’t be long before the light begins to turn RED and the window begins to close and an opportunity will be missed.

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