It is never a bad time to buy good real estate. By good real estate I mean real estate that is placed properly in the market and is the best value with the consideration of price and condition. Of course every investor wants the deal of the century but what about those of you who are looking for a HOME to live in? Many of them have some fears that are created by our economic uncertainties and the falling prices of real estate in general. Let's take a look at three positive reasons to buy now.
1) Interest rates are low.
Interest rates are near the lowest point since the 1970's. Many buyers want to wait to see how low they will actually go. However, comparing current rates to the past 35 years, what is available now is good, and history shows that rates have rarely been better. When rates have been lower, it's not by much. What we do know is that rates are about the best that they have been in a long time. They have actually started to inch back up again.
2) Home prices have become more affordable.
Nationwide, average home prices increased dramatically from 1991 through 2005. Prices began to drop in 2005 and are now comparable to prices in the mid-1990s. Many believe that prices will cotinue to drop further and wait to buy. No one can actually predict when prices will hit bottom. We only know prices hit the bottom after they start to rise again, and then it's too late to buy at the lowest point. We know homes homes are selling for less than they did in the past. Combined with sellers who are willing to make concessions and low interest rates, this is a great time to buy.
3) Inventory is high.
The increase in home prices that happend in the 1990s ultimately resulted in a lower number of affordable homes. When people cannot afford to buy homes, inventory increases. As inventory increases, prices drop. We're at a point where prices are reasonable and inventory is high. Many feel that something better will come along and they make the choice to not act when they find the right home. In this market, like any other, the best houses sell fast. Buyers who wait get to select from the leftovers.
The great thing about having a REALTOR is that they can analyze the market for you and offer you only the "best-buys". "Best-buys" are the homes that are "in" the market. They are priced right and are in the best condition for the price. These homes go quickly so it helps to have your REALTOR looking out for them consistantly and sorting through the rest of the homes that are "out" of the market.
It's never a bad time to buy good real estate!!!
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