Home buying in this economy

GREEN BAY - Typically the arrival of spring marks a rebound in the housing market after a slow winter season. This year a depressed economy along with falling home prices add a new dimension to the real estate industry for sellers and buyers.

"It's a bit challenging right now, Mark, with all the bad news, people are reluctant to move ahead with a purchase," said Terry Hilgenberg, of Hilgenberg Coldwell Banker Real Estate in Shawano.

But Hilgenberg says for those who have stable employment and are in the market to buy, now is a perfect time.

Why? Interest rates are at their lowest point in decades, falling to around 4.8 percent for a 30 year fixed mortgage. Northeast Wisconsin real estate agents say prices of existing homes are down more than 10 percent from last year, and there are plenty of homes on the market.

"It didn't slow me down too much. I thought about it and well now is the time to buy prices are down and interest rates are low so might as well go for it," said Keith Raddant.

Raddant just purchased his first home, and in addition to a good buy, also qualified for the $8,000 tax credit, thanks to the government's new stimulus program. But the up to 10 percent of the purchase price deal isn't just for brand new buyers.

"If you haven't owned a property in three years you qualify as a first time home buyer," explained Michael Rabideau with Olejniczak Realty in Allouez.

Others are hoping to save money by looking to buy one of the growing number of foreclosed homes on the market. But the homes turning up at the weekly sheriff's come with no guarantee.

"I know quite a few people who have gotten hung with a second mortgage, second liens or back taxes , water bills stuff like that," warned Scott Sonnabend, who regularly buys foreclosed properties for investments.

As with any home in this economy, there are good deals out there, you just need to know what you're looking for and if the time is right for you.