Yesterday, the National Association of Realtors announced that home purchases rose 1.4%, beating economic forecasters estimates for the month.
Is this a sign of good things to come? Affordability is at record levels. Lower prices, and low interest rates have created opportunity for homebuyers who haven't been able to justify buying. In our market place some home buyers are getting house payments not only lower than what they could rent the house for, but for a little more than a luxury car payment.
Is this the time to buy? Perhaps. It depends on the buyer, and it depends on the buyers personal situation. Many markets are showing signs of price stabilization. As much as we'd like to, we can't predict the bottom of the market. So, if a buyer has a stable source of income, and has long term plans for owning the home, it can be an excellent time to buy.
Long term ownership is important because it will allow the buyer to outlast any short term dips in value. There will be a time when demand for homes picks up, and we see value increases again. For the long term, a home will be a good investment for most people.
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