Why it a Great Time to Buy a Home

With more homes to choose from, prices softening, interest rates still at their lowest, and more time to make a rational buying decision, it’s a great time to buy a home.

Future buyers, here are a few things to consider -

Selection
There are almost 15,000 homes on the market in the Portland Metro area – an amount almost three times higher than 2005. Just two years ago the inventory of homes dropped below 6,000 and buyer’s were rushed and forced to make compromises. Today’s buyers can find homes closer to work, within biking or walking distances to schools, transit, and community hotspots.

Pricing
Just two years ago buyers were dealing with multiple offers and fast escalating prices. It was common for multiple buyers to bid up the price of a property. Often there were escalation clauses where buyers authorized their brokers to outbid other offers by thousands of dollars. Today, the market has relaxed and competitive bidding is rare. Selling prices are often below asking price, and a seller isn’t likely to be insulted if a buyer “makes them an offer they can’t refuse.”

Patience is Tolerated
Buyer’s can take more time in their search and decision to buy. In the hot seller’s market two years ago, everything was rushed as buyer’s had to find the home before others, and hurry to make an offer.

Due Diligence is Welcomed
Today a buyer is encouraged to obtain the necessary home inspections. Two years ago many home buyers waived these contingencies in order to gain advantage with multiple offers.

Repair Requests are Welcomed
After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might have insisted the home be sold “as-is.”

Fewer Investors
It is estimated that one third of all sales in 2005 were to investors. These buyers increased competition and caused the market prices to inflate.

Financing is Available
Interest rates continue at their lowest making homes are more affordable. Fixed rates are back and will be looked back upon as a great financial opportunity. FHA and first time homeowner bond programs that allow low down payment options are still available.

It truly is a great time to buy!

Darin Provost - All Rights Reserved ®