The current economic situation prompts us to review the idea of home ownership. Interest rates fluctuate up and down. Home values have reacted to the lack of available inventory for would-be buyers and have thus remained on the high side, in spite of rising interest rates. The economy is in a bit of turmoil and understandably could result in some reluctance for buyers to proceed at this time. While it may sound like “just so much real estate hype” to say that there are still some compelling reasons to strongly suggest that this is an excellent time to buy a home. If you take five minutes and read this notice and I think you will agree. Here’s why:
LOW INTEREST RATES: Interest rates have continued to adjust, both up and down), but are only one factor when considering a home purchase. We have experienced low home interest rates for the last half decade or more and the recent upward trajectory can be daunting. But, overall, rates remain historically low. While no one knows with any accuracy what rates will do in the future it seems likely that they will stabilize in the near term. Being pre-qualified now will give you an advantage when you do find he “right” home at your affordable price and terms.
REDUCTION IN INVENTORY: As interest rates have adjusted, both up and down, home inventory has generally declined. This lack of inventory is credited with keeping home values elevated as competition among would-be buyers has become more frequent. Never the less, buyers can still purchase and profit from the future appreciation. Real estate is almost always a good long term investment. But, be careful. While demand still outpaces supply and buyer competition remains fierce, it is more important than ever to buy at market value.
TAKE ADVANTAGE OF POTENTIAL FUTURE APPRECIATION: The economy typically moves in cycles. Home values are likely to keep appreciating, although not at the past double digit amount. Nevertheless, this seems like it is still a good time to buy and by remaining out of the market, or renting, you may give away potential appreciation. If you have considered selling your present home and “buying up”, you will likely have to consider the comparison of your current low interest rate with a possible higher current rate.
INVESTMENT ADVANTAGES: Our personal homes still represent the best tax shelter and investment that most of us can afford. While the tax laws have changed some of the “tax shelter” benefits for home ownership, many are surprised to learn that owning a home can cost little more or even less per month than renting.
INDEPENDENCE: Ownership frees you of dependence upon a landlord, eliminates the worry caused by rent increases, and allows you to “create” your own living environment to meet your family needs. Most homeowners will say that there is nothing like the emotional impact of owning one’s own home. And Clearly still economically advantageous when compared to renting. .
So, this remains a great time to purchase your home. Waiting for prices or interest rates to decline could be a big mistake. The best place to start is by getting pre-approved for a loan.
QUALIFYING FOR A LOAN: Qualifying for a loan has become a bit more flexible and there is an array of loan products now available to meet motivated buyer’s purchase needs. While the options for those with past credit difficulties have declined, options still exist and this is an excellent time to strengthen one’s credit profile. That doesn’t mean that everyone is capable of buying a home, but you could be surprised.
A FREE counseling session, a credit report and a few pieces of documentation can allow you to be pre-approved for a specific loan amount. Then, you can purchase a home, knowing in advance that you have the loan funds available. At the very least, such a meeting may provide a “road map” to what must be done to be able to purchase a home in the future. You are urged to do this before you search for the “right” home to buy.