THE PERFECT STORM IN REAL ESTATE!!
Buy now or you might regret it later……Buying a home is one of the biggest decisions an individual can make. So, it’s understandable that one considering a home purchase may take their time to avoid rushing into such a large financial commitment. However, several factors might leave prospective home buyers who don’t purchase a property now wishing they had taken action sooner.
“Current market conditions have created A PERFECT STORM of sorts that has made it an ideal time to purchase for first-time and trade-up buyers alike,” said James M. Weichert, president and founder of Weichert, Realtors. “Those who have the means and the desire to buy now but don’t, aren’t likely to see such a great opportunity again anytime soon.”
LOCK IN ON THE HISTORICALLY LOW INTEREST RATES
Thanks to measures taken by the Federal Reserve including the purchasing of mortgage-backed securities, interest rates have remained historically low for several years. With the economy beginning to show signs of recovery, it is widely believed that the government will soon put an end to these stimulus efforts. If that happens, many economists believe we will begin to see a sharp increase in interest rates which could result in a much higher monthly payment for those who wait. For example, an interest rate increase of 1% on a 30 year fixed mortgage of $300,000 could cost a buyer $188 more a month or $67,000 more over the span of the entire loan. Another way of looking at it is that for every 1/8% rise in rates, the “amount of home” you are able to afford reduces by $10,000. For instance, if you can afford a $350,000 home with today’s interest rates, when the rates increase by just 1% you will only be able to afford to buy a $270,000 home. So, I ask you….“If rates are historically low, what is the likelihood they will go up”?
TAKE ADVANTAGE OF RECORD HOME PRICE AFFORDABILITY
Home price affordability is at its most optimal level in decades. As a result, those who wait to buy will likely pay more for the home they purchase than what that same home would cost right now. In fact, home prices have already begun to rise slightly in some markets. Instead of getting a better bargain, waiting to buy a home might net buyers a higher purchase price, less appreciation and less house for their buck.
THERE IS NO TIME TO WASTE for anyone who wants to take advantage of this great buying opportunity. If you are prone to saying “what if” and wondering what could have been, you will thank yourself down the road for buying now.
Contact me, and let me show you how to take advantage of this Perfect Storm in Real Estate!!
~Connie Cooper