“It is something of a perfect storm of opportunity for buyers, which I have not seen before,” says John D. Turpin of Turpin Realtors in Oldwick (turpinrealtors.com). “Significant price corrections over the past three years coupled with the government’s efforts to stimulate the home-buying public have created an amazing opportunity for home purchasers in New Jersey and around the country. Right now is a particularly important time for the first-time home buyer.” Here’s why:

Record-low interest rates. Thirty-year mortgage rates remain near historical lows, hovering around 5 percent. When you compare this to rates of 9 percent in the 1990s or 18 percent in the 1980s, you’ll see why this is such a big deal.

For example, for a mortgage of $300,000, you’d pay $1,610.46 a month at 5 percent, $2,413.87 at 9 percent, and $4,521.26 at 18 percent. Today’s low rates are allowing many couples to afford houses they previously could never have imagined owning.

But Turpin advises that these record low rates are not here to stay. “The government has announced that it will pull back on purchasing mortgage-backed securities, which most analysts agree will drive our currently low interest rates much higher,” he says. “So even if home prices continue to fall, the value in waiting is likely to be erased by rising interest rates.”  

The $8,000 tax credit. Available for first-time home buyers purchasing homes less than $800,000, this sizable tax credit, which was part of the government’s stimulus program, has been approved by the Senate to be extended until April 30, 2010. This applies to single buyers with incomes up to $125,000 and married couples with incomes up to $225,000.

“Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through homeownership,” says Charles McMillan, the president of the National Association of Realtors.