Is Now The Time To Buy? by Dave and Carla Higgins
We were recently asked to contribute to an article being written for Money Magazine about how now is actually and excellent time to be a buyer in the Real Estate market. Several of our clients who have recently entered the market had been sitting on the sidelines, some as long as 4 years, waiting for the right timing to make a real estate purchase. So, many do agree that there are several reasons why now may be one of the best times to purchase real estate.
Interest Rates are Still Low
The media has given a lot of attention to interest rates being on the rise. The fact is that even with a little fluctuation they still remain at near historic lows. When Dave and I made our first joint real estate purchase in the early 1990's rates for a Non-Jumbo, Good Credit score were nearing 8.5%. With current stabilization in housing prices with interest rates still near historic lows this create an excellent opportunity for real estate purchases.
National Trends
Much is made of national trends and with good reason: National trends are easy to track, get lots of attention, and provide useful benchmarks.
That said, national trends do not reflect a baseline reality: Real estate is local. If the local population is growing, if the nearby job base is increasing, if nearby new home starts are not sufficient to meet demand, and if mortgage rates are low then you can logically expect local home values to rise over time. It's not a guarantee -- there are no guarantees -- but price increases in such situations are at least reasonable.
Perspective
We live in an era of measures, numbers and statistics. For instance, the January jobless rate, according to the
Bureau of Labor Statistics, reached 4.6 percent, .03 percent higher from a year earlier.
But did you also know that in January the total number of (non Farm) job holders increased by 111,000 positions? Did you know that while 7 million people were unemployed, 146 million had jobs? Did you know that a 4.6 percent unemployment rate is considered "full employment" by many economists?
As a nation we've been having several economic concerns and with past experience any blip on the economic radar tends to get noticed. That's fair and we should be concerned. At the same time, let's not ignore the whole picture. Most people are doing well -- and will continue to do so.
A Look At The Whole Picture
Most people have jobs today and will have jobs tomorrow. Will there be tough times in certain industries? Absolutely. Will some communities be hurt? Yes. But you need to ask what realistically is your own situation. Have you lost your job? Is your job in jeopardy? Is your household income about to decline?
If no, then what about your housing needs? If you need to buy a first home, if you would like to move-up, what objective barriers stand in your way?
It's true that some prospective buyers will delay purchases because of the current slow-down -- and for some buyers postponement makes sense. But the issue is not what other people are doing, it's the question of what's best for you given your particular circumstances.
At the very least, review your personal finances, check mortgage rates, take a look at your local marketplace, and consider your needs. You may find that now is indeed a very good time to be a buyer.
