January 26, 2011
Here are the reasons it's time to buy:
1. The 2011 NABE Industry Survey indicates that the employment outlook is the highest it has been in 12 years. 42% of firms surveyed announced that they were planning to increase their payroll in the next quarter and only 6% reported plans to reduce payroll. Less unemployment means that more buyers will qualify for mortgages and will enter the housing market. Also, people who have had their homes foreclosed on but have returned to work will be looking for better rental properties putting upward pressure on rents.
2. Reuter's reported yesterday that Consumer Confidence is at an 8-month high. People are feeling better about the economy and the jobs outlook. When consumers are more confident about the economy they're more willing to take a bet on buying a house.
3. Interest rates on a 30 year fixed mortgage are hovering around 4.75%. The Fed will have to increase interest rates at some point which will impact the mortgage market. Low interest rates coupled with relatively flat to falling (in some markets) home prices means that the affordability of a home is the best it's been in years.
These economic indicators lead me to believe this is a very good time to buy a home. Talk to a mortgage broker and find out what you need to do to qualify for various loans, then talk to a Realtor® and find your new home. You really don't want to miss out on what will probably be the best buyer's market of the next 25 - 30 years.