Is it finally time to dive into the housing market in Bucks County?

I have a number of people who have been following the local real estate market for many months, and in some cases, more than a year.  I watch as these folks search my website for listings, and we  have actually looked at homes, from time to time, in some cases. According to an article in the Wall Street Journal, yesterday, some people are finally deciding that the time is right to take advantage of the glut of inventory of houses to choose from, as well as low interest rates, and are taking the plunge.

As the article points out, the housing bust, appears to be creating a new group of winners; first time home buyers.  People who watched as friends rushed to buy homes several years ago, are now in a position to take advantage of what look like, incredible deals.  According to the National Association of Realtors, first time home buyers made up 41% of all buyers at the end of 2008, up from 36% in 2006. 

First time home buyers are in a great position.  They are lured by home prices that are obviously depressed.  In some markets, prices have fallen by as much as 40% from peak levels.  Fortunately, in Bucks County, prices have not fallen as significantly, but they are definitely lower.  Houses are clearly more affordable.

In addition, mortgage rates are near historic low levels. 

On top of low prices, and low mortgage rates, it appears as though there is going to be a great tax break specifically for first time home buyers, in the financial rescue plan.  As the plan is currently presented, first time home buyers may be eligible for an 8,000 tax credit, if they buy in 2009. 

First time home buyers are in a great negotiating position when making offers.  Having nothing to sell, makes them extremely strong buyers.  Often sellers are willing to accept lower prices, knowing that a first time home buyer, with strong credit, is presenting offers that are clean, meaning that there is no worry about the sale of another house. 

Because of the amount of inventory, buyers can be patient and selective.  Although we won't know where the bottom of the market is, until it is too late, it appears to be an ideal time for first time home buyers, to get into the real estate market.