10 REASONS TO BUY A HOUSE IN 2011

May 25, 2011 6:50PM PST |

After the crash in 2008, the housing market is now in the process of stabilization. Despite this, foreclosures hit the 1 million mark in 2010. However, because forclosures are high and houses are losing value, 2011 is one of the best years to buy a house. The market is very much in favor of the buyer. Read on for 10 reasons why buying a house in 2011 could be a smart move for you:

-  Although mortgage rates are on their way up, they are still at a historic low. These rates will not last long.

- There are tax cuts available this year that make buying a house much more affordable. Mortagage interest can also be deducted from your income taxes when you file.

- Builders have been building new houses on the sidelines for the past few years because homes are more affordable, but the market is on its way up.

- Buying a home makes much more economic sense than renting. In the current market, home mortgage payments can sometimes be much lower than rent. If you're settled into your current location, why not buy? Its a smart investment and a great place to establish your family.

- There is a willingness to sell at this time. This makes buying easier, as the seller is more willing to negotiate with buyers on things like moving dates, closing costs and repairs.

- The Federal Housing Administration has made buying a house secure and accessible. It is possible to buy a home for as low as 3.5% down.

- There are a large number of Real Estate Owner (REO) properties that make it possible to buy a sizable house at a great price. These properties are owned by the mortgage company after not selling at a foreclosure auction.

- There is a chance that lenders will begin to loosen standards in the new year. Tight restrictions in the past few years because of the housing market crash in 2008 have hurt the market. The National Association of Realtors is currently lobbying lenders to loosen standards and as the economy improves, credit will become more attainable for the average American.

- Eventually the economy will fully recover and these low rates, prices and tax deductions won't last. It makes sense to buy while the market favors buyers.

- The era of get-rich-quick real estate is dead and the era of increasing long-term wealth in your home is back. Buying a home in this market is an investment that will pay off in the long term.

Arroyo Seco is here to help with any questions you have regarding the housing market, buying a home and more. For more info, call 323-254-3966 to speak with an agent.