Time to Buy
If you happen to be a fence sitter and can’t decide if this is a good time to buy, you shouldn’t hesitate any longer. If you have a steady secure job and good credit, in all likelihood you are a great candidate for home-ownership.
Mortgage interest rates are at historic lows, but are projected to start rising, albeit slowly. Home prices have probably hit bottom in the majority of metropolitan markets, and in most of these markets prices are beginning to edge upwards.
According to a National Association of Home Builders (NAHB) survey taken last year, homeowners still place a very high value on owning a home, and strongly recommend ownership to others.
Data from the survey reveals that 96 percent of homeowners are happy with their decision to own. Another 79 percent would advise a friend or family member “just starting out” to buy a home. Seventy-four percent of respondents said that despite the ups and downs in the housing market, purchasing a home has been the best long-term investment they could make.
There is a growing inventory of new homes on the market with home building start-ups increasing, and many of these are “move-in ready.” Foreclosure and short sale properties present an opportunity for many would be homeowners. Many existing homes are coming onto the market as relocation sales increase with the improving economy, or existing homeowners are choosing to sell and “move up.”
Unlike other investments, a home purchase can be done through “leveraging.” Simply put, potential homeowners do not have to come up with the full purchase price out of their own pockets, but can borrow the money for nearly the full purchase amount. For other investments, such as stocks, this isn’t so.
With home values once again on the increase, homeownership will lead to the building of equity in the home. In many metro areas recent price gains have out performed the stock market, once again setting the stage for financial wealth and security for homeowners.