Now Is a Great Time to Buy a Home!

9 July, 2012 (20:17) | Relocation | By: Keith and Mary Williams

In today’s economy it is more than okay, in fact expected, to be weary of pricy investments such as houses. The United States’ housing bubble that occurred after 2006 crippled the market and home values reached an all-time low in 2012. The increased foreclosure rates coupled with an overall decline among the rest of the economy has not made buyers feel any more secure. However, there are many indicators that show now might be one of the best times ever to buy a home.
1. Mortgage Rates are Low
Currently, the 4.6 percent interest rates on 30 year fixed mortgage rates are a steal compared to years or even decades past. Rates for 15 year mortgages are even a better deal at 3.6 percent, and both rates seem unlikely to fall much lower or even stay constant for much longer. By the end of 2012 many experts expect rates to increase to at least a full percentage point or even more.
2. Less Competition
Right now there are simply not many people interested in buying a house and therefore homes are selling for much lower than they normally would. Due to this trend, many people are unable to sell their homes at a reasonable value and are not in the position to buy. This means there is much less competition for those truly interested in buying which gives leverage to the buyer with fewer people to outbid him or her.
3. The worst is almost over
Many economists believe the housing market will not continue to slip much further. The market seems to be stabilizing and should only drop by a few percentage points if the market continues to decline. Otherwise the market should begin to stay at its current level, but most aren’t too optimistic the market will see huge improvements any time soon.
4. Renting just isn’t the best value.
With the housing market crashing people have scrambled to become renters. This has drove rental rates to skyrocket, especially when compared to today’s low mortgage rates. Paying a monthly rent is also not an investment like one day owning a house is and rental rates will only continue to increase according to many.

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