Buy a home now! If you have one, buy a rental or two, NOW!

By
Real Estate Agent with Powered by: Real Broker LLC 50781-90

 

History says, now is the time to buy a home.

We have written many times over the last 48 months that now is the time to buy a home. Now the case can be made, if you own 1, buy 2 more too, such is the opportunity. 

Of course what we have been saying has been correct all along.   If you had bought a home in Madison Wi over the last 2 years you could not go wrong. 

But now the proof is mounting that this elongated opportunity is closing fast. 

Let’s start with home sales, nationally they are trending up to 5.28 million from a low of 3.84 back just 6 months ago. (annualized figure)

 

So Sales are up. so do prices!

 

Let’s look at affordability! 

home affordability in MAdison Wi

Homes are more affordable that they have ever been, based on price and interest rates against household earnings.  Household income to home price fell to 13% in 2010.

Let’s look at interest rates: 

Home mortgage rates Madison wi

They have gone up almost 1% from all time lows just 3 months ago.  Hovering just below 5% for a 30 year, and predictions they will be at 5.6% later in the year.  Every 1% hike in rates is like adding 10% to the price of a home.   How long before we get to a historical average of 8.9%

It is likely, due to increased activity, prices will go up soon, and higher interest rates will make home less affordable. 

I ask you:  Can you hear me now?

Posted by

Guy Lofts CRS,  is a long-term area resident who has been helping people make sound housing decisions since 1993.  Guy is a past president of the Wisconsin Chapter of CRS, the Certified Residential Specialists.  A leader in technology, having had his first personalized web page in 1995.  With a first Blog in 2006,  Guy has provided training with in his office and is to present a training at past Wisconsin Realtor conventions.

His passion is helping people improbe their quality of life through Real Estate.  That means whether you are in real estate of ust want to invest of buy a home, we can help you.

Real Estate Guy @ eXp Realty Madison 

Helping Buyers and Sellers in Madison WI  Search all homes for sale, Madison WI

 

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Comments (1)

Mark Nehs
Mortgage Loan Officer Waukesha Wisconsin - Pewaukee, WI

I think the buyers are getting it.  Prices are still very low. 

Feb 21, 2011 03:09 AM