Consider all the facts when buying a home - Saint Cloud Minnesota
I read an article in the St. Cloud Times Sunday edition (1-18-09), titled “Bad Time To Buy”, off the wire from Boston. This article strongly suggested that buying a home now would be a mistake, but fails to weigh all the factors.
There is a great difference between Boston, Ma. and Saint Cloud Minnesota. The prices are lower here, and the market more conservative. In fact, there are vast differences between the best and the worst market areas in this country.
In my 25 years as a licensed Realtor®, I have never seen better conditions to buy a first home. A buyer today has the benefit of great inventory, low prices driven by the competitive sell-off of bank owned properties, plus historically low interest rates, plus motivated home sellers, plus a first time homebuyer tax credit of $7,500 that expires on July 1, 2009. http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2008/10/15/so-important-it-needed-to-be-reposted-st-cloud-mn-area-real-estate-buyers-please-read.aspx
Now, in Boston, $7500 will not go very far towards the down payment and closing costs on a home. In central Minnesota however, you can buy a nice home for $125,000. A 3% down payment (FHA) and 2.5% closing costs equals $7,500.
So ask yourself some serious questions.
Are my job and income secured?
Will I stay in the area, and in this first home, for 4+ years?
What can I afford?
The article places the interest rate around 5%. If that rate goes up 1% that is a 20% increase in the interest expense. If you buy a home for 10% less, but can not afford the payments, what good is the price?
The St Cloud Times should have printed the article with the disclaimer: This is not Boston. This is Saint Cloud Minnesota, and some of this information may not be relevant. Please seek advice from a Professional Mortgage lender, Attorney, Realtor®, and or Financial Adviser.
When looking at statistics and market data, consider the source and scope of the data, and then discuss this with your professional advisers.
For accurate market statistics I am providing the following links:
East St Cloud Minnesota: http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2009/01/09/update.aspx
South Saint Cloud Minnesota: http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2009/01/09/saint-cloud-minnesota-area-real-estate-market-update-south-st-cloud-housing-statistics-2007-vs-2008.aspx
West Saint Cloud Minnesota: http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2009/01/12/west-saint-cloud.aspx
North Saint Cloud Minnesota: http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2009/01/12/st-cloud-mn-area-real-estate-market-update-north-st-cloud-housing-statistics-2007-vs-2008.aspx
Sauk Rapids Minnesota: http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2009/01/13/sauk-rapids.aspx
Sartell Minnesota: http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2009/01/13/sartell.aspx
Waite Park Minnesota: http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2009/01/14/saint-cloud-minnesota-area-real-estate-market-update-waite-park-and-vicinity-housing-statistics-2007-vs-2008.aspx
Saint Joseph Minnesota: http://www.stcloudareahomesforsale.com/blogs/elizabeth__steve_baklaich/archive/2009/01/14/saint-joseph-and-vicinity.aspx
