Reasons for Buying a Home in Today’s MarketGreen Realty > Buyers > Reasons for Buying a Home in Today’s Market
- Homes have never been more affordable
Home affordability, as measured by the median mortgage payment on the current median-priced home as a percentage of the median household income, is lower than it’s been in generations.
In most areas of the country, eager buyers can find incredible prices on homes. Many properties are valued below the cost of construction. With the bursting of the housing “bubble”, millions who overpaid or who borrowed against inflated equity are now unable to recompense their monthly mortgages. This inability to make payments has flooded the market with foreclosures and short-sales. The resulting market glut has made homes incredibly affordable.
- Home prices are holding steady
Every major price index points to a housing market that has hit bottom. Home prices appear to be stable in nearly every U.S. marketplace. The delay is over for all who have been waiting for prices to reach bottom. It appears we are there!
Home values will most likely increase in the near future. Home buyers who are ready to purchase are in the driver’s seat. Now is the time to find unbelievable buys. There may never have been a better time in history to acquire a residence.
In addition to great prices, the housing inventory is abundant. The selection of available homes is amazing. You can now get your amenity-packed, dream home at a remarkably low price.
- Mortgage rates are inching upwards so act now while rates are still affordable.
Buying a home today means you can lock in a low fixed rate on your mortgage. Plus, there are still opportunities for qualified buyers to make less than a 20% down payment.
This combination of low rates and minimal initial investment presents a very unique and desirable window of possibilities.
- Build equity in your home
With prices at rock bottom, buying a home today means you may quickly gain equity.
Historically, home values have trended upward following a down market. It can be expected to happen again. If you purchase a home now and stay in it for a reasonable period of time, you can be fairly assured you will see substantial future value growth.
- Sellers are motivated!
In the recent real estate markets, homeowners have struggled to sell their residences. Buyers have been waiting for prices to decline yet further.
Many sellers, after having their homes on the market for a long time, are incredibly motivated. They are willing to negotiate because they understand it is a buyers market.
Without doubt, the vast inventory of homes has created an abundance of incredible deals for home buyers. For a seller, this is an extremely competitive marketplace.
Current market conditions have also created a surplus of foreclosed properties that banks are eager to sell. In addition to foreclosures, there is an increasing number of “short sales” in the marketplace. Collectively known as “distressed properties,” short sales and foreclosures tend to sell for an average of 20 percent below market value.
Now is the time for smart buyers to seize the opportunity! Now is the time to buy a home!
- Ownership costs are dropping below rental costs
One unique benefit to home ownership is that currently the monthly cost of a mortgage payment is often less than rates for rentals. Why rent a residence when you can own one for less money?
Also, don’t forget that rents may be subject to an increase every year. Mortgage payments usually remain fixed throughout the life of the loan. As a huge bonus, homeowners receive a federal tax deduction on their mortgage interest. This deduction can amount to an annual savings of thousands of dollars for the average homeowner.
- Home ownership remains at the core of the American Dream
A recent Fannie Mae study reveals that the majority of Americans still aspire to own a home – and for good reason. Owning a home offers financial stability. It is a great way to build wealth. Despite the recent market upheaval, the vast majority of Americans still consider home ownership to be an important part of the American Dream.
- Home buyers have more choices
Home buyers generally have more choices than those looking to rent. Buyers are not limited to style, location, or features, but can seek out their exact preferences.
Homeowners do not experience the restrictions on making modifications faced by renters. Changing colors and making alterations are not possible in most rental situations.
- Unlimited Choice of Neighborhoods
With today’s large numbers of homes “for sale,” buyers have more options with regards to finding a home near the schools, shopping, and neighborhood they desire. Now is the time to buy in that “prestigious” location you have had your eye on.
In the next 6-months to a year, the availability of these choices may dwindle. Buyers may miss out if they don’t act quickly.