Time flies and things change. Hard to believe it has been so long since the last blog. So let’s get current with things.

Feds have loaded up the $8,000 tax credit for first time buyers defined as those not owning a home in the past 3 years. The beauty of this incentive, assuming you qualify and many will, it isn’t a loan like the first incentive was. As an example, if a qualifying homebuyer is to receive a tax refund of $2,500, they will actually get $10,500. Consult your tax professional on this but it appears to be a “big time” game changer for many potential homebuyers but it is only available for a short time. Funny how things that really help folks stop about as soon as they start but the “fat cats” have an endless supply of great bailouts (hand outs is more like it).

Interest rates are incredible right now. They are bouncing around but with them from high 4’s to mid 5’s what are people waiting for? How many times have we heard people reminisce about missed opportunities? Guess what, that is what we will hear again. When “Peanut” Carter was the President, mortgage rates hit 16%. Now that’s a deal killer. Rates around 8% were once considered fantastic and refinances were rampant. Rates could get better but you can bet your sweet posterior they WILL get worse!

Believe it or not, some building materials prices are going up. We are accustomed to believing lower demand equates to lower prices. Not True! More than one material supplier has defended their price increases to me directly. Paraphrasing their remarks, “Buyers for their products have no choice. If they are buying it is due to necessity and we are going to make a profit.” How else can you justify concrete prices escalating 50% in this market? This logic impacts the home building industry where there is a choice. Concrete cost increase on a 1,500 square foot home built on a slab will be around $2,500. New homes in inventory likely reflect lower overall pricing of materials so the sales prices are lower.

If you have a stable job, your financial “house” is in order and don’t anticipate any major lifestyle changes, it may be the time to get serious about buying a home. Get comfortable with idea of feeling some risk; the only two things in life that are certain are death and taxes.