The Case to Upgrade Your Home...NOW!

Many homebuyers are lamenting the fact that they would love to purchase a new home and take advantage of some of the great deals and lower interest rates, If only they could sell their current homes.

Since February when the economic stimulus package's $8,000 tax credits provision for first time home buyers took effect this market segment has expoloded. In fact almost 50% of all buyers have never owned a home before. In a more normal market, the percentage of total buyers that are first timers would be closer to 25%. This rush on the starter home market is actually causing some mini-sellers markets to form in the price point. Many well priced homes are actually seeing multiple offers much the same way as they did in the boom. Pricing hasn't recovered to peek, nor is it likely to anytime soon, but when taken as a percentage of peek, the under 200k price point is fairing much better than the next level of homes.

It is actually a pretty alarming contrast do in part to the fewer than expected move-up buyers, the oversupply of homes in the price point, and the discounting from banks and builders. In many communities the pricing differential between "Executive Models" and "Starter Models" are so razor thin as to almost disappear. If you figure in the ability to move your homestead savings from house to house with Florida's new portability laws and the historically low interest rates, Many people are actually able to dramatically increase their home size without increasing the payments.

Move up buyers might even be in a better position to buy than a firsttime homebuyer because of the huge discounts in the luxury and near-luxury homes. This is particularlly true as USDA/Rural Development loans consider changes to income limits for zero down payment loans and FHA raises lending limits to values high enough to purchase homes in this market segment.

As with any investment, Great deals are made buying when others are selling and selling when others are buying. This is a good time for move up buyers to do both.


The author is Scott Wells is a Realtor and Tampa Market Realty Analyst and can be contacted at , RE/MAX First in Real Estate, 813-961-6405, scottwells@remax.net, http://www.infotampa.com . this article can be freely distributed as long as it is distributed whole..