Is it still a good time to buy?

1. The length of time you're planning to stay in your home.
   Now may not be the best time to do a "Fix and Flip".  However, if you're planning on staying in your home longer than two years, then you will benefit from buying now for a couple of reasons. First of all, by living in your primary residence for more than two years, you will avoid capital gains tax when you sell. Secondly, tax benefits and paydown of mortgage principal will more than offset any fluctuation in value.
2. The mortgage interest rate you're able to obtain.
   Although long term interest rates are no longer available at 5.0%, they are still lower than they've been in decades. If your credit rating allows you to take advantage of these exceptionally low interest rates, you will be able to get "more house for your money" now, than when interest rates and home prices have climbed higher.
3. The price range you're looking in.
   This is an excellent time to "trade up" in the housing market. Prices of homes in the mid-to-upper price range have begun to level off since and even decline in the past several months. However, we have not seen a decline in the prices of homes in the lower price range.  In fact, homes in the most affordable price range have even risen slightly. 
4. But I'm a first-time homebuyer, what about me?
   It is becoming increasingly difficult to find affordable housing for first-time homebuyers. It is important that they talk with a REALTORŪ early on to discuss their situation and line up a lender who will work with the first-time homebuyer to prequalify them and help them get their credit score up. They also need a REALTORŪ who will work closely with them, so that the first-time homebuyer can find a home that meets their needs at an affordable price. It is crucial that their agent keep up with new listings on the MLS, as these homes sell very, very quickly.
5. Bottom line . . .
   This is definitely a buyers' market right now.  There's lots of homes on the market right now, and most sellers are willing to consider an offer, especially if the home has been on the market a long time.  There's also some sellers who recognize that the real estate market is not as hot as it was last year and who want a quick sale, thus they price their homes very competitively at the outset.  So, between declining homes prices and historically low interest rates, now is an excellent time to buy.  Prescott's designation by Money Magazine as one of the Top 5 Places to Retire may actually prevent a further decline of home prices in our area as more people consider Prescott as a relocation destination.
6. Make a wise decision!   Work with a REALTORŪ who's knowledgeable about the latest housing trends and indications.  It's equally important to work with an agent who listens to your needs, is honest with you, and who will work hard to make your housing dreams a reality!