In recent weeks, a number of "news" articles and blogs have appeared in the local media questioning the decision to purchase a home in the current market. Yet as REALTORS® you know that today's historically low mortgage rates, more realistic selling prices and healthy inventory levels have led to improved affordability locally, making this an opportune time to buy a home.

If you are currently working with potential first-time home buyers who may be uncertain about whether to own or rent, we have compiled a host of compelling facts and statistical information that highlight the value of home ownership:

1)      The advantages of owning a home, include a number of financial and social benefits, not the least of which include federal income tax deductions on mortgage interest and property taxes, as well as the security of knowing they can not be evicted from their home without cause upon termination of a lease. Be sure to incorporate these talking points into your conversations with prospective home buyers.

2)      Owning a home also provides one of the best paths to accumulating personal wealth.  As evidence, a recent Federal Reserve study found that the median net worth of U.S. homeowners is $184,400, or 46 times greater than the average renter's median net worth of $4,000. Share this chart with those on the fence.

3)      Housing is a solid long-term investment.  Provided one's lifestyle or living arrangements won't dictate a move in less than 3-5 years, homeownership often makes more sense than renting. Data shows that over the past 30 years, the median price for existing homes in the U.S. has increased an average of more than 6 percent per year and the typical home nearly doubles in value every 10 years.  For more facts and figures, refer prospective buyers to www.housingmarketfacts.com and the Consumer Resources section of the Massachusetts Association of REALTORS® website for "Why It's a Good Time to Buy."

Furthermore, while it's true that mortgage lending standards have been tightened in recent months, it's also important to educate consumers about the new, higher loan limits announced last week for FHA mortgages as well as Fannie Mae and Freddie Mac conforming loans. The new loan ceilings will provide access to loans with more attractive terms, including lower-priced "jumbo" loans. Importantly, however, the lower rates for jumbo mortgages will only be available until December 31, 2008. 

By then, interest rates also may have risen and home prices could strengthen, making this spring an ideal time to buy - the very argument made by writer Dan Kadlec in his article entitled "Ignore the Headlines" which appeared recently in Time magazine.