IS NOW THE TIME TO MAKE A MOVE?

If you are considering buying a home, there are some excellent opportunities to get a lot of home for a very good price.

Before I go further, let me say this. The bubble has not "burst" in the North Texas area, mainly becuase there was never a bubble to bust. Much of what we hear in the news media today about the "housing slump" includes reporting (not all of it responsible or accurate) about areas of the country that have seen extreme run-ups in prices, which are now coming back down to earth amidst the credit crunch.

Appreciation in housing prices has historically been steady and sane in the Metroplex. Prices are still rising - yes, rising - but not at the rate they did in the past. This is because it is harder for people with poor or marginal credit to get a loan, so while there are buyers out there, there just are as many these days.

This puts some sellers in a bind. Builders are particularly hard hit, especially those in the entry-to-mid-level markets. Many of them are scrambling to get rid of inventory that is costing them dearly to hold on to, and they did not plan for the credit difficulties that are keeping a good many of their prospective buyers from purchasing a home. Also, a lot of buyers I have spoken with are holding out, waiting to see just how low prices will go.

So, as a buyer you are wondering what kind of home can be gotten at a bargain these days. Basically, homes owned by "motivated sellers", such as homes held by a builder with excess inventory, and existing homes being sold by sellers who have to move, either becuase of job transfers or financial problems, whether mortgage-related or not.

Builders are offering all kinds of incentives to purchasers these days, such as "free" upgrades, rent buy-outs, covering closing costs, etc., so if you go in with good representation - meaning a Realtor - you can get the "deluxe" model at the "standard" price. This is the good news. The bad news is that you will most likely have to chose from homes in inventory, as very few builders are starting homes at anywhere near the rate of past times, and such "starts" are more likely to be pre-sold units. Also, the Zero-Down loan, while not completely a thing of the past, is getting harder and harder to get, with not much let-up in sight. Right now, you must have a FICO score of at least 680 to get a Zero-Down loan. Some special programs will allow as little as 620. A good loan officer will be able to tell you what you might qualify for.

Existing home owners are facing challenges as well. Many have Adjustable Rate Mortgages (ARMS), and the rates have spiked recently, increasing their home payments beyond their means to pay, thus the large number of foreclosures. Those who aren't facing financial problems are having to compete against these and other "distressed" properties, making it more difficult to sell at a good price.

What this means for the average buyer is this: If you want to upgrade, now is as good a time as any as long as your credit is good, especially if you are willing to put some extra effort into prepping your home for market, and willing to provide a little "TLC" to a diamond in the rough. Sell into a slow market (but still at the top of that market), then buy near the bottom. It can be a net gain if you get the proper guidance.

If you are a first-time home buyer with good credit, there are indeed bargains to be had. The bad news is that many sellers are holding off on making an elective move because they are afraid of the market. This means that while you may not have as many choices, the sellers that must sell understand (for the most part) that they have to accomodate the buyer in the current market.

So, if you have kept your financial nose clean and are ready to react to the changing landscape, I can say with confidence that now is an excellent time to be buying a home.