Posted: 28 Nov 2012
Based
on prices, mortgage rates and soaring rents, there may have never been a
better time in real estate history to purchase a home than right now.
Here are five major reasons purchasers should consider buying:
Supply Is Shrinking
With inventory declining in many regions, finding a home of your
dreams may become more difficult going forward. There are buyers in more
and more markets surprised that there is no longer a large assortment
of houses to choose from. The best homes in the best locations sell
first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.
Price Increases Are on the Horizon
Prices were expected to bounce along the bottom this winter. However, many pricing indices (examples:
CoreLogic, FHFA, LPS, Case Shiller) are reporting that prices are continuing to rise.
Rents Are Skyrocketing
Rents historically increase by 3.2% on an annual basis. A
study issued earlier this year projects rent increases of 4% for the
next two years.
Trulia recently reported that rents this year have actually shot up by 5.4%.
Interest Rates Are Projected to Rise
The
Mortgage Bankers Association has projected that the
30-year mortgage interest rate will be 4.4% by the end of 2013. That is
an increase of approximately one full point over current rates.
Buy Low, Sell High
We would all agree that, when investing, we want to buy at the lowest
price possible and hope to sell at the highest price. Housing can
create family wealth as long as we follow this simple principle. Today,
real estate is selling ‘low’. It’s time to buy.
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