If you didn't believe me, take it from and Economist - It really is a good time to buy

By
Real Estate Agent with Central Metro Realty 568764

January 31, 2011

A few days ago I wrote a post about this being a good time to buy a home citing three conditions that I believed make this a desirable time to buy:  Employment Outlook, Consumer Confidence and Interest rates. 

Well I was right, at least according to the NAR Baseline Outlook prepared by Lawrence Yun, Senior VP and Chief Economist at NAR published on 11-05-11.  Yun cited the following items that are "compelling".

Stability in Home Values, according to Macromedia home values are expected to rise modestly with only a 4% gain in 2014.

The mortgage rates have bottomed out, rates are expected to hit 5% in 2011 and 5.9% in 2012.  The difference between a rate of 4.81% and 5.9% is almost $75 per month per $100,000 borrowed.  For you math whizzes out there, that's over $2,200 a year extra in payments on a $250,000 home. 

Existing homes are finally considerably cheaper than new construction. 

Home Sales will improve "in line with job growth; 5.2 million in 2011 (up from 4.8 million in 2010, but same as 2000)"


"Pent up Demand"  The population has increased by 30,000,000 since 2000 but the number of home sales has remained the same.

Profits earned by businesses has returned to the 2006 level but the spending has not resumed yet.  As soon as business spending picks up the economy will improve dramatically.

So there you have it, advice from a Realtor® and an economist.  It really is a good time to buy.

Tamara

Posted by

Tamara Elliott-Deering, Realtor, SRES

Central Metro Realty

512-629-3090, tamara@tamaradeeringrealtor.com

www.betterlifechange.com

Comments (4)

Paula Stills
RE/MAX Real Estate Results - Bentonville, AR
Full time Real Estate, Ready when you are!

Good morning Tamara, food news thanks .....Make it a great day.

Jan 31, 2011 12:04 AM
Shannon Coe
exp realty of California, Inc. - Oceanside, CA
760-586-5268, San Diego Realtor

I believed you but thanks for the back up proof! Happy Days are here again?? I hope.

Jan 31, 2011 04:12 AM
TERRY DRISCOLL
MAINE HOME REALTY - Bath, ME
REALTOR - Buy or Sell in Any Season!

Tamra, from what I've heard, the Austin market held up a bit better than most over the past couple years - - if you want or need a home, there's no better time to buy!

Jan 31, 2011 01:30 PM
Navona Hart
Real Living Cornerstone - Farmville, VA
Selling the Best Properties in Central Virginia

Tamara,  I didn't need Lawrence to believe you!  But isn't it nice to know you were right!

Feb 01, 2011 05:20 AM