Unfortunately, overall things haven’t improved all that much. Some states are showing a bit of recovery from problems, like California, but others are still struggling, and even those markets that weren’t affected as much by the housing distress are now having issues as their sales are fairly flat.
It begs this question; is this really the best time to buy a new home? That answer is “yes”, emphatically, and I’m going to give 4 reasons why.
1. Interest rates are very low. In many states mortgage lenders have rates as low as 3.99%; that’s phenomenal! Sure, many of them have tightened standards for giving out loans based off the crisis but if you can qualify for one you’ll be sitting pretty.
2. Even though 51% of all home sales nationally are of foreclosed homes, that’s not really such a bad thing. Some of the foreclosed homes were never lived in, while some of them were lived in for only a short period of time. Also, it means that in many states home sales are starting to outpace the rate of foreclosures, and that means that there will be a bigger demand for new homes at some point.
3. Home builders are still building new communities. We’ve read about homes being built in Texas, New York, California and many other states with the expectation that there will be buyers for those homes, and there seems to be. Those buyers that qualify for the low mortgage rates are finding that they’re able to get great deals on new homes as opposed to buying pre-existing homes, as well as negotiate for options and amenities that might have cost too much in the past.
4. Home builders are also offering deals you’ve never imagined before. For instance, Toll Brothers is offering up to $4,000 in airfare and vacation accommodations if you purchase a home in one of their communities in Florida. Other home builders are offering major discounts and free upgrades as enticements. Frankly, this is probably one of the best times in history for a buyer to feel special.


