Finally, it is time to buy a house

The decision to pursue homeownership may be based on many factors: everything from a friend’s decision to purchase a home or a family member’s advice against “throwing your money away on rent” to your bad experience with a landlord or the noisy neighbors sharing your wall. While all of those scenarios (minus peer pressure, of course) may inspire valid arguments for considering the purchase of a home, how do you determine if you’re genuinely ready to join the ranks of homeowners? After all, buying a home is a massive decision and includes multiple, long-term financial and lifestyle obligations. The average person spends around 1/3 of their income on their home. You’ll still need to do the work to make sure your personal finances and holistic life picture are also in alignment before you buy, as well of the work it takes to ensure that your real estate and mortgage decisions are sustainable and smart, over the long-term. A good Buyer’s Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare. Here is an interesting article worth a few minutes of your time:

The Wall Street Journal

Finally, it is time to buy a house
Buying real estate is a good long-term investment for many reasons, some of which have only become apparent in recent weeks.

Making sense of the story

• Housing prices rose sharply in May compared with April.  The S&P/Case-Shiller Index, a closely watched real estate index, rose 2.2 percent in 20 of the nation’s big cities.  Prices rose more than 3 percent in Chicago, Atlanta, San Francisco, and Minneapolis.
• Nationally, the increase was the first in seven months.  More importantly, the increase matched other data and evidence this spring that foreclosures slowed and inventories were shrinking.  Economics suggests that as the supply of distressed property slows, buyers will be forced into higher-price properties.
• In addition, interest rates on 30-year fixed mortgage have tumbled below 3.5 percent.  For those who can get credit, these aren’t just historically low rates; they are one-sided deals tilted toward borrowers.
• Housing starts also rose in June, and for those who can afford to invest in property, rents continue to rise.  Prices are at a 10-year high.  Real estate website Trulia found that it is cheaper to buy than rent in each of the nation’s 100 biggest metropolitan areas.

Read the full story.