As home prices drop to its lowest level in six years and mortgage interest rates at record lows, purchasing a home may make a lot more sense than renting one.
The S&P Case Shiller index of property values fell 2.6 percent after falling 3.5 percent in February.
Nationwide, however, prices were up month over month - the first two-month streak since a tax credit for home-buyers expired in spring 2010.
In 13 of the 20 cities, average home prices fell in March from the year before. Atlanta fared the worst, with home prices down 17.7 percent year over year. Home prices in Atlanta, Cleveland, Detroit and Las Vegas are all below their January 2000 levels.
Foreclosures and short sales offer some of the best bargains, but they do come with an increased risk level. Still, more than four in five adults think foreclosures and short sales can be good deals, according to a recent American Society of Home Inspectors (ASHI) survey.
Some analysts say the rebound has begun and home prices may rise by the end of 2012. This means now may be buyers' last chance to take advantage of affordable properties and low interest rates. If you want to score a bargain before the housing market recovers, you'll need to follow a few rules to invest with certainty.
Here are some of the things new potential home owners should consider before buying:
1. They should be committed to living in the same location for a few years, have a secure job and income, and have saved up enough money for a down payment.
2. Find a good Realtor who has experience, a great track record and can help you narrow down your options of houses to buy.
3. Make offers only after you have been preapproved so that you can speed up the process.
4. Take your time when buying a house. It's a huge decision and should never be rushed but consider all your options before making an offer.
5. Always get a home inspection first. An inspector will visually examine the condition of the home's roof, attic and insulation, foundation, basement and structural components, as well as interior plumbing and electrical systems. Be sure to find an ASHI-Certified Inspector (ACI) to ensure your inspector is experienced, as many states have minimal licensing requirements. To find a local ACI, use ASHI's "Find an Inspector" tool on www.ASHI.org.
6. Consider the location of the house - look at things like crime rate, level of schools in the surrounding neighborhood, how close is it to offices and work places. This is especially important if you plan to later rent out the place, it makes it more appealing since it'll cut down on gas or other commuting fees.
