Looking for a townhouse in Cottage Grove, MN? You might be wondering if it’s a good investment. The past five years of the real estate downward spiral in the United States has been discouraging for some, but surveys show that most Americans still believe that buying a home is a good way to invest their money. And with good cause, per the Wall Street Journal. There are indications that 2011 might be exactly the right time to buy:
- Mortgage rates are near 50-year lows
- ARMs are at record lows
- Homes are more affordable than ever
- The high number of foreclosures has created a buyer’s market
But it won’t stay this way:
Such conditions might not last long. Moody’s Analytics predicts that the number of distressed sales will begin to fall in 2013, and that prices will begin to edge upward then. Home building is at a virtual standstill, so the supply overhang isn’t likely to get much worse. Meanwhile, demographic indicators such as “household formation”—the number of new households each year—are on the rise, and promise to take a bite out of the glut in coming years.
No one predicts that the housing market will rebound in the next year, but if you’re making a longer-term plan for investing in a townhouse in Cottage Grove, the outlook is good. Rising rent prices and falling housing prices means that soon many who rent for financial reasons will likely take a hard look at whether buying wouldn’t be more to their advantage.
Analysts don’t expect housing prices or interest rates to get much lower than they are right now. Interest rates are, in fact, expected to increase. Even a half-percent increase in mortgage interest can add a hundred dollars or more to your monthly payments, depending on the amount of your loan. Because of these factors, now is a great time to invest in a townhouse in Cottage Grove, MN!