A Golden Opportunity for First Time Home Buyers

By Raymond Stoklosa · December 12th, 2008

“Five or ten years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.” We’ve been saying this now for a number of months here at LivingWellinSanMateo and it seems now that The New York Times has finally picked up on it.

My prediction has been simple: many will look back and regret not buying a home in 2008/09 and I’ve said it here and on video here.

In San Mateo County and the northwestern area of Santa Clara County (i.e Palo Alto, Mountain View, Sunnyvale, Los Altos) there are growing signs that the market has bottomed. We are reading reports of multiple offers and homes sold within 2-3 weeks of listing. Within the past 60 days, we have seen numerous over-bids on homes in certain neighborhoods. All of these signs point to a spring resurgence lead by pent up demand, low interest rates and the desire to capitalize on the $7,500 Federal Tax Credit for income eligible first time home buyers that is effectively an interest-free loan. (Remember though it expires after June 20th.)

Of course, there are those properties that languish on the market — sometimes known as “over-priced turkeys” — in this price sensitive market. Buyers are making both a financial and an emotional commitment to own and enjoy their own home. Clearly, they are looking for value and are more discriminating and critical than they have been. But make no mistake about it; buyers recognize value when they see it.

Winter typically brings softer prices and a greater willingness on the part of home sellers to offer concessions. So, the best time to capitalize on the market forces is now. Pay attention to the window though as spring comes early to the Peninsula. Our most active home buying period begins around March 1st when we have more buyers looking than at any other time of the year. Buyers who shop now have the least competition from other buyers and more receptive sellers.

If you’re credit worthy, have a reasonable down payment and are serious about establishing roots and building a lifestyle, it may be time to act before you miss the best home buying opportunity we have seen this decade.

For our First Time Home Buyer Toolkit, give us a call at (650) 655-2500 or check out our free real estate toolkits page and we’ll send it to you today!

Other Posts You May Enjoy