Three Reasons to Buy a Home Now
Michael Murphy, editor of the New World Investor stock newsletter is advising investors to buy now for these three reasons:
· Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.
As always, sellers that really want to sell will. The question for the sellers is do you have to sell and will you price your home to sell in this market. A lot of the sellers are putting their homes on the market with a no answer to will you price your home to sell. The evidence of that is that on Long Island over 50% of the homes have had their price reduced or the listing extended. Desperate Sellers - I wonder?
· Little competition. Because most people don't have what it takes to negotiate their way through short sales and REOs, patient investors are winners.
The bulk of the listings in my market is not short sales and REOs and the bulk of the buyers are not investors. Yes, the Short Sales and REOs are out there and they do effect the rest of the market but they are not the be all and end all of listings. Getting a mortgage, because it is tougher these days to get one is a much greater factor. If you have a job, money and a good credit score - you are king.
· Low rates. Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.
The rates are low and it is a GREAT time to buy. The rates as in the past will go up. The question is when? Probably when the economy improves the rates will go up.