1. Affordability: The median purchase price level is close to what it was in the year 2000. Many buyers who could not afford to purchase a few years ago can now afford to buy.
2. Interest rates are near an all time low. They have gone up a little recently and someday may go up much higher.
3. In some cases, a mortgage payment will be less than what is being paid for rent!
4. The tax deduction for mortgage interest payments: If a buyer itemizes on their federal tax return they may have a deduction for mortgage interest. For example, if someone paid $12,000 in mortgage interest for a year and were at a 20% federal tax rate, they may receive up to a $2,400 tax deduction. (The buyer needs to see their accountant before buying).
5. Supply: A buyer has many homes to choose from.
6. Negotiating power: Since it is a buyer’s market, the seller will often pay most or all of the
buyer’s closing costs and prepaids.
7. Your own place! A place to put your stuff!
Residential Focus By Fletcher Wilcox, Vice President of Business Development, Grand Canyon Title Agency, Inc. Fwilcox@GCTA.Com 602-648-1230
