It is human nature to try to get the best possible deal on anything you buy. When it comes to real estate, buyers often wait and try to time the market to get the lowest possible price. Sometimes this exercise works out, but it is almost impossible to do. Even the best analysts have a difficult time determining when prices will be at the bottom floor, not to mention coupled with low interest rates and sluggish demand. The reality is that even though home prices have risen slightly we are still in a great market for buyers!
If you bought real estate a few years ago when the market was at the bottom, consider yourself fortunate and be happy with the deal you made. While the current market may not be the bottom of home prices, it is still on the way up. Home values were certainly inflated in the last decade, so if you look at where prices were in relation to current values there are still many great deals to be had.
Low home prices are the prime reason to currently look at real estate but there are also other mitigating factors. Interest rates are approaching historically low levels with the latest drop, so now is the time to take advantage of these rates to get much more house for the same price. The difference in a 4% vs. 5% interest rate on a $200,000 loan is close to $150 a month. This could pay for your electric bill or cell phone bill. It wasn’t that long ago that interest rates were around 7%, so even a 5% rate is an excellent rate. Once rates start to go up there is no telling where they will stop.
While the economy has gotten better over the past five years it still has a ways to go before we reach full recovery. A strong economy means higher buyer demand and higher home prices. If you can position yourself to buy a property now you can get in before home prices take off. For renters, you will get the best deal on a home by staying ahead of the curve and the trends, not waiting.
“There is no time like the present.” — This isn’t just a cliché but a saying that really applies to the current real estate market. Between steadying home prices, historically low interest rates and ample supply, this fall season is a great time to buy real estate.