Now, may be the best time to buy.

With the Fed now on the sidelines from buying mortgages, the rates have crept up 1/2 to 3/4 of a percentage point from the lows. Nevertheless, the rates are still at a historical bottom. With the economy showing signs of stabilizing rates can only go but up from here.

Do you buy a home now or wait for prices to fall further.

This is a question many buyers are pondering these days. Even though there are no absolutes, we do know that with an improving economy the rates, barring another Fed intervention, are bound to go back up to the level before the recession hit (around 6.5%). As for home prices, the rate of decline has come down and prices should stabilize around this level. Clearly then, buyers that wait until next year to buy are faced with higher rates and possibly higher home prices.

What about the $8,000 tax credit for first time Homebuyers?

If you are a first time homebuyer (not owned a property for the last 3 years) you have the additional bonus of receiving up to $8,000 from Uncle Sam if you close by 12/1/09 (you do not have to pay this money back). Factor this credit in and it becomes impossible to see how one can be better off by waiting. This is the opportunity of a lifetime and we anticipate the late Summer and Fall to be strong as many of these homebuyers will scramble to get a place before December.

Our website: HomeownersMKE.com does offer the largest inventory of available properties in SE-WI so make a good use of it to find the home of your dreams.