I subscribe to the KCM Blog. The author, Steve Harney, is a market researcher. Unlike some of the others, he has been a real estate practitioner for many years. I have heard him speak on a few occasions and his understanding of the national, and more importantly, the hyper-localism, of the real estate market is impressive.
Today's post talks about the 4 Financial Reasons to Buy Now. Sitting on the sidelines will impact your buying power. For example, for every 1% the interest rates rises, that decreases your buying power by 10%!
That means the $250,000 house you can afford now, will become the $225,000 house you will be able to afford when the interest rate goes from 4.5% to 5.5%.
Combine that with a superior spring market where multiple offers are not uncommon in the suburbs west of Boston, prices begin to rise.
Additionally, the rental market is increasing. With so many former homeowners having been negatively affected by the downturn in the economy and who have lost their house in a distressed sale or to foreclosure, they are renting. In basic supply and demand theory...well you know the rest. Rentals are up significantly and that means landlords are in a position to increase rents.
So, as a buyer, if you are fence sitting, these 4 reasons should be compelling enough to get you into action.
The first step...where do you stand with your financial situation? If you have not already done so, sit with a mortgage adviser who will help you analyze your situation. Are you in good shape and ready to go? Or do you have some work to do that will put you in a position to buy in the next 6 months? That adviser will give you a financial health check up and get you on the road to being a qualified buyer in today's market.