Patrick McCarran

How is the Market? Should I still Buy?
There has been a great deal of chatter about whether the sky falling and with it the housing market. What most alarmists do not discuss is that only a small percentage of loans in the USA are over $750,000 and over one third are owned outright. The factors that led to a crash in 2008 are not in paly today. The PRIMARY reason to own a home is UNCHANGED.
The WHY you should own is relatively easy. Rents are high and with the strong resistance to building they will continue to rise and be unpredictable, when you own you know what your payment will be and it your home not the landlord to dictate rules. Mortgage interest will most likely remain the largest deduction for the middle class. Mortgage interest rates remain historically low and there is a fair amount of inventory from which to choose.
So what’s holding you back? Down Payment? Many people are intimidated by the widely publicized 20-percent down-payment requirement. There are many federal programs and other methods designed to help homebuyers, and even those who have lost their homes to foreclosure.
For example, Freddie Mac and Fannie Mae and FHA have loans available to first-time buyers with as little as 3-3.5% percent down. If you qualify there are a number of programs and grants that can help with the down payment. With a seller credit for closing costs I have gotten buyers into a home for as little as $500 out of pocket. For veterans, the VA program has no-down-payment loans available for qualifying military members and veterans that can close with almost no out of pocket money.
Why wait? What’s the worst that could happen if you buy a home now? You’ve already seen it, the 2007 mortgage crisis. It will take generations before the government lets the banking systems get that far out of hand again. It is far more likely that home prices will steadily climb as they have been. Americans are back to work and leading the global economy out of stagnation. The American population will continue to grow and build families of all types, creating more demand for housing. Look at the home-ownership benefits that are mostly forgotten by today’s potential homebuyers — the chance to build equity (instead of throwing rent down the drain) and the opportunity to customize your own environment.
As a homeowner, you have the benefit of security and stability, as well as the freedom to decorate and remodel. You can redo your kitchen, build a deck, put in a swimming pool, or add a playroom for the kids and make your house a home.
Instead of paying your landlords mortgage you can build equity for yourself and get the tax benefit as well. With each monthly mortgage payment, you’ll own more and more of your home and when you finish paying off the mortgage, every dollar your home is worth is yours.
That’s what has always motivated Americans to own their own home. And it isn’t going to change in the long run. Grab the American Dream now. Call a REALTOR and Loan officer you have nothing to loose and everything to gain!
Patrick McCarran is a local Realtor and Broker. Call/text 925-899-5536 • • Independently owned and operated. Equal Housing Opportunity. In association with Realty One Group Elite DRE#0193160. Equal Housing Opportunity.