Top 5 Reasons to Buy a Home
1. Housing Affordability Still at Record High Levels
Each month the National Association of Realtors issues its “Housing Affordability Index,” which measures the ability of the average family, in a particular geographical area, to afford the average priced home for that area. In February 2012 the national affordability index was 206.6. This means that if a family with the median income of $60,974 wanted to purchase a median-priced existing singlefamily home at $157,100 (with a 20% down payment of $31,420), they would have 206.6% of the qualifying income needed to purchase that home.
2. Interest Rates Are at Historic Lows
It’s still a great time to take advantage of historically low interest rates.
3. Tax Advantages of Homeownership
Whether you’re a first-time buyer, up-sizing, or down-sizing, most homeowners qualify for tax breaks annually. Please consult a tax advisor.
- Interest paid on a home mortgage maybe tax deductible (up to the value of the primary residence)
- Property taxes are typically deductible for most homeowners
Plus, for most homeowners, there are no capital gains taxes when a primary residence is sold. Please consult a tax advisor.
4. Inventory of short sale Real Estate Owned (REO) properties
Also called lender-mediated, lender-owned, or non-traditional, these properties may appeal to bargain hunters looking for that hidden gem.
5. Inventory of homes overall is at an 6.4-month supply nationally. It is a buyer’s market!
More than 6 months of housing inventory indicates that it’s a buyer’s market, where traditionally buyers enjoy more choices and more bargaining power.
Regional differences in housing affordability from February 2011 to February 2012
Please contact me for all your South Florida real estate needs at (305) 329-4929 or [email protected]