Don’t take it from REALTORS. Take it from business observers when they tell you “Now is the time to buy that house.”
I've resisted saying "It’s a good time to buy” which seems to be the mantra of real estate professionals regardless of the market situation. I think that statement is relative to what the buyers want to do, their desires, their needs.
No matter what the environment is, there are people who will buy a house for different reasons.
So when market observers say “It’s time to buy that house” it’s time to share that information with buyers and investors who are on the sidelines waiting for the market to turn in their favor.
Don't take it from a REALTOR's point of view -- take it from them.
Steve Harney’s KCMBlog.com calls attention to recent headlines that should be shared. Here are the headlines and links to the quoted articles.
Wall Street Journal – October 16, 2011 Headline: It’s Time to Buy That House.
Excerpts:
“Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades. “
“Houses aren't the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”
Market Watch - October 3, 2011, Headline: Now might be the best time ever to buy a home.
Excerpts:
“There are a lot of reasons to consider buying a home right now. The big savings on interest is just one of them — the difference between a 4% rate and a 5.5% rate on a $200,000 home loan is just shy of $200 in monthly payments and can save a homeowner more than $60,000 in interest payments across the life of the loan.
Another motivating factor could be the fact that rents remain sky-high in the U.S. right now, and in many markets it's actually cheaper to buy a home than rent a two-bedroom apartment.“
Forbes - October 12 2011: Buy That Dream House Now or Wait Until Prices Fall Further”
Excerpts:
And here’s the answer I love the most:
"My answer to those who ask whether no'ws the time to buy a house is that the American Dream is and always was alive and well. It has nothing to do with the direction of housing prices but
everything to do with your financial situation, income stability, ability to shoulder the costs, and if the home you have your eye on is your version of the American Dream—a home you love that you hope to live in for an extended period.
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