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How to Decide on Whether to Remodel or Purchase a New Home!

by Galand Haas

Good Monday Morning!

When I meet with home owners who are considering the sale of their home, one of the main questions I am asked is, "should I remodel and stay in my home or sell?" Also, many sellers make the mistake of doing expensive upgrades to their home prior to selling it.  The following is an informative article from Realty Times that addresses these issues.

Pending home sales are down 7.3 percent from one year ago, according to the National Association of Realtors, and this trend is likely to continue until wages increase and credit becomes more available to average borrowers. Obtaining a mortgage is a daunting task these days, even for those with reasonable credit scores. Those in the market for a new home or planning to remodel their existing one should consider the following factors before committing to either option:

Local Market Conditions

There are two dynamics to buying a new home: selling your existing one, and then getting a good price and rate on the new one. Some markets are actually conducive to doing both smoothly and efficiently.

Las Vegas is the top market for sellers, experiencing a 33 percent year-over-year increase in asking prices from July 2013 to 2014, according to data compiled by Trulia. The Sin City also experienced a 5.2 percent drop in home values from April to July of this year. Part of this, again, can be attributed to the monetary policies of the Fed in 2014.

Regardless, homeowners who act quickly to sell in cities with significant year-over-year price gains (including most of Northern California, Salt Lake City, and Portland, Oregon) will likely walk away with enough cash for a down payment on a new home. The Bay Area in particular is a prime sellers' market. Despite high prices, inventories there remain low, which means homes are snapped up almost as soon as they become available.

Check with a local real estate agent to get details on both home prices and inventory in your area.

Counterproductive Upgrades

Steven Melman of the National Association of Home Builders told Market Watch that Americans spent $130 billion upgrading their homes in 2013, up 3.1 percent from 2012. But homeowners spent far less per project over the past four years. The average renovation so far in 2014 costs $4,000, down from $6,200 in 2010, according the American Express Spending and Savings Tracker.

Renovating is obviously less expensive than purchasing a new home. But the task is not without its own hurdles. The first step to remodeling a home is coming up with the capital to do it. Most people will need to take out a home equity loan or line of credit, which in turn creates new debt.

Homeowners should only consider remodeling if it will increase the value of their home over time.Adding smart home appliances, energy-efficient windows, and lighting are the most common renovations that almost always provide a good return. Consult the annual Cost vs. Value Reportpublished by Remodeling magazine before starting any project.

Future Market Conditions

A study commissioned by the nonprofit urban leadership firm CEOs for Cities found that homes within walking distance of schools, malls, parks and other amenities are worth more than those in areas where you have to drive to get anywhere. Whenever you see construction projects happening near your neighborhood, find out what is being built.

Despite the negative reception Wal-Mart stores typically receive when being built, their overall positive effect on home values is difficult to ignore. Researchers at the University of Chicago and Brigham Young University found in a 2012 study that homes within a half-mile from new Wal-Mart stores experienced a 3 percent increase in property values. Research all current and future construction projects near your neighborhood before considering a sale.

The choice to buy new or remodel is a personal one. But exercising due diligence will ensure you're making the right decision.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 

 

 

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2535 PIERCE ST
Price: $359,000 Beds: 3 Baths: 3 ½ Baths: 1 Sq Ft: 2359
Amazing gem in the hills! Beautiful city view from above! Enjoy serenity and privacy while nestled in the trees! Great room layout, recessed lights, skylights, travertine tile floors, vaulted living room ceiling, 2 decks. Granite counters in kitchen...



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Important Tips for Your First Home Purchase

by Galand Haas

Good Monday Morning!

A large percentage of home sales today are to first time home buyers.  The current market of low mortgage interest rates has given first time buyers an excellent opportunity to become home buyers.  The following is an article from Realty Times that offers some great tips for anyone considering the opurchase of their first home.

Before you start seriously shopping for a home, there's some groundwork you should do to put yourself in the best position to buy a home.

Start early, a couple of months before you talk to a lender or hire a real estate professional.

Check and repair your credit

 

The Fair Credit Reporting Act requires the three nationwide consumer credit report companies, Equifax, Experian, and TransUnion, to provide you with a free copy of your credit report and FICO scores upon request once a year. You can order the reports by visiting AnnualCreditReport.com, or call 1-877-322-8228.

Each credit report company has its own criteria for scoring your credit report. A lender will usually use the middle FICO score. All three scores need to be as high as possible for you to receive the best interest rates.

If you can, order the reports at least three months before applying for your home loan. If you find a mistake you need to correct, or you want to improve your score by paying down an account, you'll need at least two months before the credit score improves.

You can dispute an inaccurate item on the report by contacting the consumer reporting company and the information provider in writing. Be sure to include copies of your proof.

Don't accidentally raise your scores

Lenders not only look at how much credit you're using, they consider how much credit you have available. However, now is not the time to be opening any new accounts or closing existing accounts.

Don't purchase furniture or a new car or any other big ticket item before buying a home. Lenders are very careful about the amount of debt you have and how much you pay down every month on the debt payments you have.

Get Loan Pre-approval

Don't start house hunting without knowing how much home you can buy. To find out, you have to apply for a loan, which means you're sharing financial information with the lender such as income and work history, student loans, child support or alimony, and credit card balances.

Contact your lender for a preapproval letter. The letter shows that the lender has taken a 1003 loan application, studied your debt ratios to your income, and helped you select a loan program such as fixed rate, ARMs (adjustable rate mortgages), FHA or VA government-backed loans, etc.

Your lender will confirm your down payment source, interest rate, type of loan that's best for your circumstances, and the terms of your loan. The lender will give you a loan commitment based on your qualifications. The home you select must meet appraisal, and the underwriting department must approve the loan.

A preapproval letter will open doors for you, pardon the pun. Sellers will be impressed because you're prepared to buy and that a lender has agreed to process your loan. Your real estate agent will have to know the terms of your loan in order to write your offer.

Find out about federal, state, and local government incentives

Get help with your loan rate, closing costs and/or down payments through federal and state housing authority programs. For example, there are also incentives for workforce personnel – police, fire fighters/emergency services personnel and teachers.

Each community is different, so click on HUD's Housing Authorities to find out what's being offered in your community. Your city may be offering tax incentives to revitalize a designated public improvement area.

Narrow the choices

Think about how you want to live. One story or two? Low-maintenance condo or big yard for the kids? New or older home?

Drive through the neighborhoods you're interested in and look at homes. Visit a few open houses in the neighborhoods you will consider. They will usually be listed in your local newspaper with the hours hosted. Be sure to tell the real estate professional hosting the open house that you are already working with a buyer's agent.

With Google maps, video, virtual tours, multiple photos, school reports, neighborhood reports and more available online or on phone apps, you can get a good idea of what neighborhoods, home styles, and home prices are like where you want to live.

Find an Experienced Real Estate Broker or Agent

Buying a first home is a complex process. An experienced real estate broker or agent will assist you all through the process: the home search, comparable homes sold, making an offer, inspection, repairs, and the appraisal, as well as help you find the best value, neighborhood, and quality home for your budget and requirements.

The seller's real estate broker pays your broker or agent out of your loan proceeds. If you don't use your own agent, the seller's broker keeps the commission, so you might as well avail yourself of professional advice. Your real estate broker or agent works in your best interest.

Don't expect perfection

There's no perfect home. You may want all the latest amenities of a new home, but even new homes come at a price, including longer commutes, higher community fees, and bigger pricetags.

Homes that need updating are priced below homes that are up to the minute and move-in ready. That could be to your financial advantage, so try to look beyond outdated fixtures and focus instead on the floorplan and dimensions. Ignore the seller's tastes and imagine each room clean and clear of clutter and with your own things in them.

Most cosmetic changes are relatively inexpensive, and you can even pay for them with your mortgage loan, in some cases. Talk to your lender.

Think long-term investment

Buying a home can be a wise financial investment, if you buy right and hold your home for long-term gain. Because of closing and moving costs, it's nearly impossible to buy a home and sell it immediately for a large gain, but it is possible to sell after a couple of years with no capital gains tax should you make a profit.

According to the National Association of REALTORS®, home equity growth beats inflation by about one to two percent annually, not to mention government subsidies for home ownership in the form of tax relief and other incentives.

However, if you look at owning a home strictly as an investment, you'll miss many pleasures. Look at your home as a home, rather than part of your portfolio. Buying a home allows you to live in the neighborhood you want for as long as you want, without having to worry that the landlord is going to sell out from under you. Your stake in a home makes you part of the community, committed to making it a better place to live.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 

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649 ST ANDREWS LOOP
Price: $539,000 Beds: 5 Baths: 4 ½ Baths: 1 Sq Ft: 5568
Outstanding value at $96 per sq ft - Hardwood flooring, granite counters, travertine tile, hickory cabinets, two walk-in closets, solid core 8ft doors, creek views, next to Emerald Valley Golf Resort. Too many high end amenities to list. Less than 2...



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When is the Best Time to Purchase a Home!

by Galand Haas

Good Monday Morning!

One oif the most frequent questions I am asked comes from potential first time home buyers who are exploring the possibility of shifting from being a renter to being a homeowner.  The following is an excellent article from "Realty Times", that addresses the question as to whether now is the time to become a homeowner.

You've done the math. With the down payment you've saved, you can safely buy a home for less money than you could ever have as a renter.

Yet, you seem unable to make a commitment. Are you sure you're really ready to buy a home?

If you find yourself saying any of the following to family, friends, or your real estate agent, you're not ready.

"I'll know when I see the right place."

"I want to see what I can find on my own."

"I'll only buy if I can get a fantastic deal."

"I'm waiting for interest rates to go down."

With houses for sale all over the place, you can easily find the right place, especially with your real estate agent screening houses for you. Prices are still lower than they were at the peak. Interest rates are still low. So what are you waiting for -- prices to rise more than they already have, for interest rates to go up? You get the idea.

Owning a home is a big responsibility, and the market has been volatile for years. If you're scared, that's understandable. So, maybe you need to examine your tolerance for risk.

Like the stock market or any other money investment, there is no sure thing, but there is plenty of evidence that returns are built over time. You'll eventually get your money back, or you might even make money on your home, if you:

1. Are realistic. A home should meet your needs for shelter and your family's activities. Don't expect your home to make you rich.

2. Buy within your means. It's no fun dreading your monthly mortgage payment.

3. Occupy your home long enough. It takes approximately four years just to get your closing costs back in equity.

4. Keep your home repaired and updated. If you have to sell quickly, you'll get a better price if your home doesn't need work.

Currently, market conditions are in your favor. High inventories in most areas, lower prices than others have paid in the past and low mortgage interest rates combine to lower your risk.

In addition, you have all kinds of incentives, like the ability to buy with a federally subsidized or guaranteed loan, as well as income tax and capital gains benefits. And there are unexpected dividends - homeowners are automatically assumed to be more responsible than renters, which is why you get a discount on auto insurance if you own a home.

If you're really ready to buy a home, you take action to make a good deal happen. You get preapproved by a lender so you're ready to make an offer on a home within your means. You give your wish list to your real estate agent, attend open houses, search on the Internet, and tell friends and family what kind of home you're looking for. Everyone and everything is working in your favor to get you to your goal.

You find the home you want, and you put your money down and you close.

That's ready.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

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2992 DAHLIA LN
Price: $217,500 Beds: 3 Baths: 2 Sq Ft: 1424
Super Good Sense & quality built! Energy efficient heat pump heating & cooling, with dual heating system-can run gas or electric. Hardi plank siding, plaster finished walls, finished garage, automatic sprinkler system plus security system. Vaulted c...



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Tips For Saving Money for a Home Purchase!

by Galand Haas

y Morning!

Mortgage interest rates reamain at near historic low levels and home prices also remain lower than they were prior to the recession.  It's a great time to purchase a home, but it takes money these days to make home ownership a reality.  Even with 3.5% down FHA loans and a limited number of 100% mortgage loan programs, there are closing costs involved.  The following article from Realty Times gives some great ideas on how you can save money, so that you can take advantage of the unique home purchase environement that we have today.

Interest rates remain historically low and even though housing prices are increasing in many areas, the market still offers lots of opportunities to become a homeowner. But what's holding many back is saving enough for a downpayment.

Reaching any goal requires dedication to that goal and a mindset that enables you to sacrifice to achieve what you desire. Often that's easier said than done. However, if you analyze your spending and lifestyle habits you can determine where you can conserve to create enough of a reserve to comfortably buy a home without feeling totally deprived. 

Here are six tips that can help you put away $50 to hundreds of dollars each month. Start with a fresh sheet of paper or a digital document that you can refer to frequently. Keeping it fresh on your mind will help you achieve your goals.

1. Write down what you owe versus what you earn. Get clear about how much is coming in and how much is going out. This alone will help you see where money is being spent and how much is being spent on things that could be cut back or cut out completely.

2. Consider getting rid of recurring expenses for services you don't really use or you use infrequently. Maybe it's a gym membership that's adding up to more than a $1,000 for the year; but you really only use it three or four times a month. That makes no sense. Get rid of it and find a workout buddy and a free place to exercise. Or it could be an audio or video membership that's going to waste. Sure, it might be $20 a month but over a year, that adds up.

Try listening to podcasts.  They're free!  Some podcasters are very entertaining and their podcasts can be excellent sources of information and resources for business and personal development.

3. Stop the coffee run each morning. Do the math. That fancy coffee drink can cost $40 a week, especially if you add a bakery treat. Your waistline and your wallet will take a beating.

4. Cut back on eating out or dine out early. Make more meals at home. This will allow you to take leftovers for lunch the next day. When you do decide to eat out, dine out earlier in the day. You can often take advantage of eating the same great meal at a less expensive price by ordering from the happy hour menu. These days,  lots of people find saving and living lean to be hip and cool. They'll be happy to join you for an earlier meal.

5. Start a side job. If you're working a full-time job, evaluate what your skill set is and see if you can freelance. I spoke with a client recently who had a "day job" and was earning additional income. He was already up about $50,000 from his side job of selling auto parts. It may take a bit to figure out where and how you can earn your side income,  but it's worth exploring. This could even turn into a full-time job. Lots of people are making money working from home using the Internet. Explore your options and see how you can generate some extra cash each month.

6. Use momentum to pay back your debt.  Work hard to pay down cards with the highest interest rate first. As one card is paid off, transfer the money you were paying on that card to another card. By combining whatever you were paying on the paid off card to another balance that you're paying down, you're giving it some momentum and you'll get that next card paid down even faster.

Remember that reducing your spending is critical to having what you want. So don't add to your debt. Once you save for your deposit, you'll want to make sure that you also save enough to have a cash reserve for emergency repairs and any unexpected crisis that might occur. Also, make sure that you make this process a good experience rather than a painful one. Keep your eye on the goal and understand that the decisions you make today will impact your future and your opportunity to become a homeowner.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 

 

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88604 ERMI BEE RD
Price: $575,000 Beds: 4 Baths: 3 Sq Ft: 3376
Gorgeous, private estate on serene 5-acres offers outstanding views from every room. This Jerome DeMarco art.chitecture home is remodeled, April 2014, in tasteful contemporary style. Granite counters, hardwood flooring. Open plan brings in beautiful...



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National Home Sales Are on the Rise Again!

by Galand Haas

Good Monday Morning!

Nationally, the number of home sales is again increasing.  On the national level, the average sales price for homes is also continuing to increase.  All signs are now postive for a robust housing market through the end of the year.  This is great news for the economy and also indicates that if you are thinking about selling your home, now is the perfect time to take action!

If you are considering the sale of your Eugene and Springfield area home, contact me and I can go over just what a sale of your home would look like.  This is free, it takes about 20 minutes and there is never any obligation.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-August-2014

Image Unavailable
2097 LAKE WIND DR
Price: $260,000 Beds: 3 Baths: 3 Sq Ft: 1789
Serene and Stylish! Enjoy the beautiful, gated subdivision of Lake Shore Estates. Contemporary styling, slate tile, Shaw flooring, Hunter Douglas blinds, cherry cabinets, high ceilings, recessed lights, Great Room layout. Two level home functions as...



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Sincerely,

Eugene and Springfield Homes For Sale

by Galand Haas

If you are thinking about purchasing a home in the Eugene and Springfield area there are two  easy and effective ways to make sure that you get complete details on all homes listed for sale that meet your search criteria.  

The fist one is by going to the web site www.eugeneoregonhomesfor sale.com.  This helpful site will allow you to search live for all homes currently listed for sale.  You can also set up a search and this site will automatically notify you just as soon as a new home hits the market that meets your needs.  This is the easiest to use and most dependable home search site available in the Eugene and Springfield area.

The second way is through a mobil search.  If you are using an I Pad, I-Phone or Android and you are frustrated with trying to look at homes in a format that doesn't work well on your mobil device, the site www.eughomes.info will solve your problems.  This is a new state of the art home search site specifically designed for mobil devices.  The cool thing about this site is that it offers a fantastic map search tool as well.                                                                                                                                                                        

Happy House Hunting!

 

 

 

 

 

Is There a Real Estate Transfer Tax attached to Obamacare?

by Galand Haas

Good Monday Morning!

Is a Natiinal Real Estate sales tax fact or fiction?  Read this interesting article from Realty Times for complete details that just might shock you!

On January 1, 2013, the Net Investment tax went into effect. Despite numerous articles and columns reminding consumers that this tax does not apply to every real estate sale, rumors continue to keep flying all over the country, claiming that the Health Reform legislation Congress enacted includes a sales tax on all real estate sales. While there is a tax, it does not apply to everyone.

The Health Care and Education Reconciliation Act of 2010 was signed into law by President Obama on March 30, 2010. It is a comprehensive and extremely complex piece of legislation. One section (1402) is entitled "Unearned Income Medicare Contribution" and does impose a 3.8 percent tax on any profit on the sale of real estate – residential or investment.

But it is aimed at high-income consumers, who comprise a small majority of American citizens.

Let's look at the true facts of this new law.

First, it is not a sales tax, nor does it impose any transfer or recordation tax. It is often called a "medicare" tax because the moneys received will be allocated to the Medicare Trust Fund, which is part of the Social Security System.

Next, if your income (technically called "adjusted gross income) is less than $200,000, you are home free. The income thresholds are clearly spelled out in the law. If you are married and file a joint tax return with your spouse, the law will apply only if your income is over $250,000. (If you and your spouse opt to file a separate tax return, the threshold is reduced to $125,000. For all other taxpayers, you have to earn more than $200,000 in order to be under the new law.

The up-to-$500,000 exclusion of gain for married couples filing a joint tax return (or up-to-$250,000 for single taxpayers) has not been repealed. Nor has the right to deduct mortgage interest and real estate tax payment been eliminated.

How is the tax calculated? It is a complex formula that could be called "the accountant's protection act". As a taxpayer, you (or your financial advisor) must determine which is less: the gain you have made on the sale of your house or the amount that your income exceeds the appropriate threshold.

Complicated? Yes. Let's look at these examples. Your adjusted gross income is $150,000. You sell your house and made a profit of $400,000. There is no change in the way you determine your gain: you take your purchase price, add any major improvements you have made over the years, and subtract that number from the net sales price. Based on this formula, you and your spouse have owned and lived in the property for at least two out of the five years before it was sold. Accordingly, you are eligible to exclude all of your profit; you are not subject to the new 3.8 tax. Keep the money and enjoy.

Change the example so that your adjusted gross income is $300,000. Since you are eligible to take the profit exclusion of up-to-$500,000, once again you do not have to pay the Medicare tax; your entire gain is excluded, and thus there is no profit to tax.

But let's assume you strike it rich and have made a profit of $600,000. Your income is $300,000. You can only exclude $500,000 under current law, so you will have to pay capital gains tax on the remaining balance. The rate currently is 20 percent, so you will owe Uncle Sam $20,000 ($100,000 x 20%).

But since your income is over the threshold, you now have to pay the 3.8 percent tax. But on what amount?

As indicated earlier, the tax is based on lesser of your profit or the difference between the threshold and your income. Your profit is $100,000. The difference between your income and the threshold is $50,000 ($300,000 - $250,000). In our example, the lower number is $50,000, and you will have to pay an additional $1900 to the IRS (3.8% x $50,000).

According to statistics provided by the National Association of Realtors, the median average sales price for homes in the United States (as of July, 2014) was $213.400. Clearly, none of these homes could make a profit of even $250,000, so if you qualify for the exclusion of gain requirements, you will not be impacted by this new law. Those requirements are: you have to have owned and used the property as your principal residence for two out of the five years before it is sold.

Of course, in homes where a large profit will be made, some home owners may be hit with this tax. But the large profit that you make should offset the nominal tax that has to be paid.

Since the law applies to all forms of real estate, including vacation homes, you should consider consulting with your tax and financial advisors as to your exposure.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

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141 KOURT DR
Price: $240,000 Beds: 3 Baths: 2 Sq Ft: 1846
Beautiful energy star rated home! New laminate floors and carpet, interior sprinklers, vaulted ceiling, skylights & architectural ledges. Living room with gas fireplace, kitchen with eating bar opens to dining room with slider to back. Master suite ...



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Good News On the Mortgage Front

by Galand Haas

Good Monday Morning!

There is some really good news on the mortgage front.  100% home financing is back.  A new home loan program is now available for those buyers qualifying for FHA financing in the Eugene and Springfield market areas.  This new home financing option is called the OMT 100 loan.  It consists of a 96.5% first loan and a 3.5% second loan. The interest rate is at whatever the going FHA rate is at the time of the loan application.  All homes that would qualify for FHA finacing will qualify for this loan program.

Another twist to this loan is the fact that in many cases, the home seller can contribute towards the buyers closing costs and create a situation where the buyers bring little or no money to the table for the home purchase.  This loan program will make homes affordable to many who were stuck because they could not come up with the money needed for a down payment.

Reemember, mortgage loan interest rates are still bouncing around at historic low levels. This is not going to last forever, so if you have been left out of the ability to purchase a home because of not having enough money for the down payment, this is your opportunity to jump in and take advantage of the current attractive home purchase environment.

Call me or e-mail me for information on the OMT 100 mortgage loan program.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING! 

Image Unavailable
2097 LAKE WIND DR
Price: $265,000 Beds: 3 Baths: 3 Sq Ft: 1789
Serene and Stylish! Enjoy the beautiful, gated subdivision of Lake Shore Estates. Contemporary styling, slate tile, Shaw flooring, Hunter Douglas blinds, cherry cabinets, high ceilings, recessed lights, Great Room layout. Two level home functions as...



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Nationally, Home Sales for June Are Up !

by Galand Haas
VideoVideo

Good Monday Morning!

Nationally, home sales were up in June of 2014.  The average home sales price increased as well.  This is good news that the nations housing market trend continues to rise.  Over the past several months, this same trend seems to be headed downwards in the Eugene and Springfield home market areas.  It will be interesting when June statistics come out in a week as to whether our local market is also starting to rebound again.

Mortgage interest rates remain very stable and are still hovering at just slightly over 4%.  For home buyers there is still time to take action on a home purchase while home prices remain a bargain and interest rates continue to hold at historic low levels.  Right now there is plenty of good home inventory to choose from in the Eugene and Springfield market as well.

Have An Awesome Week!

 

THIS WEEKS HOT HOME LISTING!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-July-2014

Image Unavailable
1669 ELANCO AVE
Price: $203,000 Beds: 3 Baths: 2 Sq Ft: 1182
Darling home in culdesac. Enjoy privacy in this efficient & updated ranch style home. Living room with gas fireplace opens to dining area with slider. Kitchen with under-mount sink, eating bar and pantry. Master bedroom with vanity, bath & large clo...



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IS NOW THE PERFECT TIME TO PURCHASE A HOME?

by Galand Haas

Good Monday Morning!

Is this the right time to purchase a home?  Here are some compelling reasons that will say yes.  In fact you may never find a better time to purchase than rihgt now.  Just when we thought the mortgage interest rates would start going back up and home price would begin soaring, just the opposite has taken place.  With current low interest rates and affordable home prices, right now is when you need to take action.  Here is an articel from Realty Times that gives yoou some great reasons for purchasing a home now!

The nature of market bottoms is that it's hard to tell one's occurred until prices and sales volume start to rise again. That's why the best time to buy is when market conditions suggest a bottom.

That means there's still some risk for homebuyers, since no one has a crystal ball that predicts the future. To take advantage of low mortgage interest rates and home prices still well below previous records, you may have to take a risk, such as riding out another short-term dip in property values.

But the rewards may be well worth it. Here are five reasons to buy a home right now.

1.   More jobs are available Total nonfarm payrolls rose by 217,000 in May, and the unemployment rate is 6.3 percent, according to the U.S. Bureau of Labor Statistics. Employment increased in professional and business services, health care and social assistance, food services and drinking places, and transportation and warehousing.

2. Houses are a great hedge against inflation The Labor Department also says the May Computer Price Index is up 2.13 percent year-over-year. The index for all items less food and energy rose 0.3 percent in May, its largest increase since August 2011.The CPI excludes volatile food and energy, so you can bet that the accelerating cost of things, otherwise known as inflation, also includes housing. You may be paying more for goods and services, but if you're a homeowner, you're better off financially. A major asset such as a home, purchased at a fixed cost, becomes more valuable when prices inflate.

3. Housing price increases are slowing The median existing-home price was $213,400, over 5 percent above May 2013. Considering that the national median existing-home price was $158,800 in January 2011. That's when the PMI Insurance Company said home prices relative to income are below market fundamentals in more than half of U.S. states. Prices overcorrected during the recession, and then they soared by the double-digits in 2013.Now housing is correcting once again from an overcorrection. Now's the time to take advantage of better homebuying conditions.

4. Mortgage interest rates are still low During the recession, mortgage interest rates for a benchmark 30-year, fixed-rate loan, averaged 4.32 percent. Now they're close to that and there's no recession. That means mortgage rates have nowhere to go but up.

5. Pent-up demand ready to release

 Since the recession, household formation fell dramatically to one percent of the national population. But considering that the leading age of the largest generation ever - 81 million Echo Boomers -- is now over 30, the numbers should be closer to the 2.3% annual growth of the 1970's, when 78 million Baby Boomers reached adulthood.The National Association of Homebuilders (NAHB) said about 2.1 million households delayed formation due to the recession which allegedly ended in 2011. Now there's pent-up demand for housing that should continue to drive home prices higher.

The takeaway A housing recovery doesn't occur in a straight line. There are surges and dips. Buyers could wait for better conditions, but the present alignment of falling mortgage interest rates, slower home prices, and larger selection is highly unlikely to reoccur.

 This may not be the bottom, but it's close enough

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Darling home in culdesac. Enjoy privacy in this efficient & updated ranch style home. Living room with gas fireplace opens to dining area with slider. Kitchen with under-mount sink, eating bar and pantry. Master bedroom with vanity, bath & large clo...

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