The Wall Street Journal recently ran an article about why now is a great time to buy a home. Yes, rates are low, yes, inventory is high, but here are some other points to consider.
1. This is a Buyer's Market. You - as a Mercer County buyer - are in an excellent negotiating position. Sellers have lost the interest of the Buyer Tax Credit and, here in New Jersey, are looking at our cold winter months coming up, when real estate activity is at its slowest. You can find a Great Deal.
2. You'll save on taxes as a homeowner instead of renter. You can deduct mortgage interest, real estate taxes, and there are many tax incentives for energy efficient improvements for homeowners.
3. You can build equity instead of pay someone else to profit off your rent. You can plan your own remodeling and have what you want and need. Think of that principal payment as forced savings.
4. You can probably buy a nicer home than you can rent. Because inventory is high - for both luxury and modest houses - you can get a luxury condo or home for much less than a couple of years ago, and your payments may be equal or less than renting a comparable property.
5. You have choices. The Journal wrote, "The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices."
6. Eventually, the backlog of distressed properties will clear. Real estate historically goes through cycles - has for generations. Prices will rise. Demand will exceed supply (this is already happening in some markets - Hawaii comes to mind.) The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. And you will have "gotten in" at the lowest rates and close or at the bottom of the slump.
7. Mercer County and New Jersey are not part of the glut. The Journal states, "Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed-either deliberately, or by inaction...a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town."
Did I convince you to at least look? Here's a link to search for homes in Mercer County, and my web site has custom searches already set up for our major metropolitan areas, and surrounding counties. Call or email and I can recommend a lender who will help you determine your buying power, and let's look at some homes.