When it comes to buying a home, now could be a good time

Although the real estate downturn has certainly made headlines from coast to coast, at least one major national media organization is offering a contrarian point of view -- pointing out the numerous benefits of buying now.

"The fundamentals are in place for a buyers' market -- excellent mortgage rates, good inventory and sellers willing to price their properties to sell," said Melissa Stites of Young Realty GMAC Real Estate GMAC Real Estate based in 920 W. Business Hwy. 60 in Dexter.

"In its May issue, Money Magazine does an excellent job of pointing out a variety of benefits home buying offers right now for those people who've been cautiously sitting on the fence," Stites said. "There are a lot of people who could buy, but just aren't aware how favorable conditions are for them."

The magazine's number one piece of advice to buyers?

Don't get greedy and try to "time the bottom" of the market. "This is the best buyers have had it in two decades, with inventories up and mortgage rates low," according to Money. Mortgage rates -- and especially those on larger mortgages -- are two additional reasons the magazine cites for buying a home today.

"Homes are plentiful and will remain so, but financing will be getting more expensive. True, the Federal Reserve has slashed interest rates, but fixed mortgages don't directly follow the Fed," according to Money. "A new law allows Freddie Mac and Fannie Mae to buy loans as large as $729,750 in 71 high-priced areas. So far "jumbo conforming" loans average 6.6 percent. The program has gotten off to a slow start; you'll need to shop around. And unless Congress acts, this bargain will disappear at year-end."

According to statistics 4.89 million homes will sell in 2008, which represents a 17.5 percent decrease below the 5.93 million-unit level in April 2007.

For consumers here in Stoddard County, Stites said there are additional reasons to be optimistic, including the fact that Freddie Mac and Fannie Mae have eased mortgage lending restrictions.

"Freddie Mac and Fannie Mae announced that they were eliminating their 'declining market' policies, effective June 1," Stites said. "This means buyers in Stoddard County can have access to safe, affordable financing with down payments of only 5 percent on most mortgages, with 100 percent financing available on some loan products."

For more information, contact Young Realty GMAC Real Estate GMAC Real Estate, 920 W. Business Hwy. 60 in Dexter at 573-624-2551. Additional information on homes for sale in Stoddard County can be found at www.dexterrealestateonline.com.

Dexter, Missouri (Grassroots Newswire) October 10, 2008