Now Is a Great Time to Buy A Home!
If you read the main headline to The News and Observer on October 27th, you may have had a panic attack over the current real estate market. The paper made it seem that our current market was in the tank, and there was no end in sight. I wanted to share this information with you about our current market, and hopefully calm some fears and let everyone know why NOW IS A GREAT TIME TO BUY A HOME!!
There are a number of factors that support the belief that now is a great time to buy a home:
Interest rates remain at historically low levels.
Inventory in our markets is abundant, giving consumers exceptional home choices.
Home sales have slowed, giving buyers the additional advantage of being in a “buyers” market.
Sale prices today are more favorable to buyers than they were earlier in the year.
Home buyers who will remain in their homes for several years will nearly always come out ahead in building wealth.
Buying Up in a Down Market
According to the National Association of Realtors®, the average value of the destination home is 50% more than a buyer’s current home. If your current home’s value has decreased by 10%, then the value of your destination home has decreased by 10%. So you will have a NET GAIN by moving up.
For example: if your current home was worth $400,000, now it may be worth $360,000. So you may have a paper loss of $40,000. But if you were looking to buy up in this market, and your were purchasing a home that was worth $600,000, and now came be purchased for $540,000, then you are $20,000 closer to affording your new home. The different between the $60,000 gain in the move up home and the $40,000 paper loss in your current home.
“But we want to wait until the market bottoms out to buy.”
As a real estate agent, and real estate investor, I completely understand your desire to purchase when the market bottoms out. That way you’ll get the lowest price and experience appreciation right away.
How will we know when the bottom has hit?
The answer is, when the market goes back UP! So we will never know when the market IS at the bottom, only when it WAS at the bottom. So it is axiomatic that you will not knowingly purchase AT the bottom. Do you agree? So then you will be buying as the market rises which will achieve one of your goals: experiencing immediate appreciation.
Here are the key benefits of buying before the bottom:
Lower interest rates. They will rise when the market starts rising.
More inventory. In a rising market your choices are fewer.
Relaxed pace. A rising market brings buyer competition and multiple offers.
Time in home. By buying NOW you can ENJOY the home.”
So if you are trying to decide if now is the time for you to buy your new home, give me a call today and let's talk about your options. You can visit my web site at www.LiveInRaleighMidtown.com or email me at LisaColeman@hpw.com. And you can also call me at 919-272-4754.
