Calling all fence-sitters out there! It is a great time to purchase a home since current real estate conditions are better than at any time in recent memory.
There is a direct positive relationship between real estate investing and inflation. Inflation happens when there’s an increase in the cost of living. Since rental rates keep pace with inflation, the prices of rental properties will rise when inflation occurs.
Interest rates: Interest rates decreased to an all-time low this past week, but few homebuyers are taking advantage of them. As the economy begins to rebound, these rock-bottom interest rates just aren’t going to stick around. This is a once-in-a-lifetime opportunity to boost your buying power. Rates for a 30-year fixed mortgage averaged 4.17% percent this past week. During the previous week, the same rates were at around 4.24%, and last year the rate was at 4.9%.
Real estate is a good investment: It may be hard to believe during a real estate downturn, but homes do increase in value and historical data proves this. According to the U.S. Census Bureau, median home values (adjusted for inflation) have quadrupled since 1940, when a median price of a single-family was only $30,600. There will be ups and downs (like the present), but based on history, you will make money on real estate, especially since you will be getting a great deal on a home right now.
‘Tis the Season: Other potential buyers are focused on cutting down Christmas trees and shopping in November, not on purchasing real estate. This means less competition with other buyers for your dream home. You can possibly avoid bidding wars and you may find low prices on homes that sellers need to unload quickly. This all adds up to a great bargain for you just in time for the holidays! The busiest time for real estate is typically in the spring so why wait for more buyers to compete with.
It’s a buyer’s market out there: Home prices have decreased since the real estate peak a few years ago, and foreclosures are everywhere. This means that bargains are everywhere for buyers. You may never see these deals again in your lifetime so don’t miss out on them!
There is a good selection of homes on the market: Many sellers have been waiting for foreclosures to clear the market, prior to putting their properties on the market. They are beautiful, well-maintained homes that may just be your dream property.
Many potential homebuyers are very hesitant to jump into the real estate market right now, but this is a huge mistake. There is a perfect storm of factors that are pointing to one thing – buy! Please consult with a real estate agent, who will evaluate your options with you. Good luck with your home search!