Homes are the Best Investment; so Yes it is Time to Buy
During my daily ritual of reading a few industry articles I came across one that I just had to share. Why you best investment is a house; Commentary: Home-sales data highlight a buying opportunity on Market Watch. After completing the short read I am inspired for the day.
We all have continued to hear many consumers saying that they are holding off to buy as the "doom and gloom" in the market does not seem suitable for home purchase. They are sitting back waiting for everything to hit the final bottom. I don't know about you but I hope we are almost there! Yes, there are still numerous homes awaiting the completion of the foreclosure process, unemployment is still high, BUT we do still have light at the end of the tunnel.
When looking at recent statistics new home sales have hit an eight month high, sales on existing homes increased 12.3% in December after 2010 being overall the worst sales year since 1997. Sending 2010 our with a bang shows a possible turnaround for the months to come. NAR chief economist Lawrence Yun stated, "December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery. The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level.”
With the January numbers out last week, Yun was correct. There is still is a large inventory, but it continues to decrease from month to month. With the numbers pointing at a near bottom real estate buyers have the opportunity for bottom fishing. Long-term investors may now have the lowest risk available today in real estate.
All these factors compiled on the truth that it is much less expensive to own a home these days than it is to rent! Rates are still extremely low, home prices appear to be at the bottom and there is decent inventory to choose from.