Is It The Right Time To Buy A House?

By
Real Estate Agent with Keller Williams Realty - DTC

Is it the right time to buy a house?

American politics certainly brings out the worst in the politicians running for office. Unfortunately, it seems that the general consensus among politicians is to show the worst in themselves by trying to point out the worst in their opponents, and unfortunately we are bombarded with it. Naturally this makes it seem as if our financial collapse is imminent (unless we vote for them, naturally).

In reality, are things getting better or are they getting worst? Is our economy better than it was in 2008? Earlier this month realtor.org had an interesting article highlighting 10 key facts about today's market.

1. The economy is growing. It's growing slowly, but the trend is improving. Based on the GPD Annualized Growth Rate we bottomed out in the fourth quarter in 2008. The economy started to show positive growth in the third quarter in 2009 and has remained positive since that time.

2. The private sector is creating jobs. The monthly net private payroll job changes follows the same trend as the Annualized Growth Rate.

3. Even though consumer confidence is low, it has continually improved since March of 2009.

4. When have you ever seen lower rates on 30 year mortgages?

5. Nationally, median home prices are stabilizing.

6. The Case-Home Price index also shows stabilization.

7. The Home Price-to-Income Ratio is better than it was in 1999.

8. Economist are optimistic.

9. Recent loan origination are performing well. Even though the approval being more difficult, borrowers that stay within their budgets stand an excellent chance of approval.

10. The Median Family Net Worth continues to grow.

So is it the right time to buy a home? Well that's a question that must be individually answered by every person considering a home purchase. It seems that the worst is behind us. Interest rates are at historical lows. There is a large inventory available with low priced homes (even lower priced if you're willing to look at buying a short sale). Maybe it is the right time and the sky isn't really falling.

If you are interested in learning more about Rock Creek or Superior, Colorado, we are at your service.

Comments (6)

Larry Bergstrom
Crescent Realty, Inc. Spanaway, WA. - Spanaway, WA
CNE, CRS, GRI

it's the best time I've ever seen to buy a home.

Sep 21, 2010 05:14 PM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Hi Mike, good post for someone considering buying a home.

Sep 21, 2010 05:39 PM
Marilyn Boudreaux
Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA
Lake Charles LA Century 21 Realtor

I just read an article from Wall Street Journal that pointed out the same thing, yeah good to have positive media for change

Sep 21, 2010 05:51 PM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal RealtorĀ®

It is always a good day to buy real estate, imho. As long as you find the right property and a willing seller.

People have to live somewhere. Can you imaging buying a property today at these record low rates then watching the market correct interest rate rise. We bought our home when rates were 13% and headed higher. Consider how much more value something you bought today will have if you secure an assumable mortgage!

Is it a good time? YOU BETCHYA

Sep 21, 2010 05:54 PM
Scott Hayes
(512) 786-8300 - Austin, TX
Realty Austin, Broker Associate

Mike,

 

All great points. These interest rates are just crazy.

 

Politicians never miss a chance to play kickball with an issue.

Sep 22, 2010 02:20 AM
Mike Miguelez
Keller Williams Realty - DTC - Superior, CO

@Larry - If we could conquer the fear, we could get this market moving in the right direction again.

@Dan - I do believe it's worth considering.

@Marilyn - It seems that we're slowly starting to see some positive stories coming out.

@Doug - I've been wondering if we'll start seeing a trend with assumable loans, especially if the economic situation continues to improve and interest rates start to return to "normal" levels.

@Scott - And like everything else those rates won't stay where they are forever.

Thank you for the comments.

Sep 22, 2010 04:06 PM