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.