Given the ongoing turmoil in the housing and financial markets, many people who want to move to a new home are sitting on the fence. They fear the “what ifs?” What if the market goes lower? What if the home I buy is worth less next year? What if I wait… will I be better off?
The questions alone can confuse even the most discerning individual. For most people, the question of owning is not a matter of if they will buy a home, it’s when that purchase will occur. If they already own, this issue also revolves around timing. The flux in the housing market has caused many prospective buyers to pause. They wonder if this is a good time to buy. The answer is simple: YES. It’s a good time to buy. In fact, the window of opportunity may never be better. It is a buyer’s market. Consider the facts:
- Available Homes Ready Now – There are various home choices in great
communities all over the area. Many have special incentives that make
them even more attractive. No need to wait to build.
- Attractive Pricing – A silver lining in the housing downturn is that pricing
has moderated and even declined in some areas. Will pricing go lower?
Unlikely, since the market adjustment has lasted longer than any other
time in modern U.S. history. This is the first occurrence in our lifetime
that home pricing is stabilized or is lower than in the previous few years.
- Low Interest Rates – Mortgage interest rates are at favorable levels and
loans are available. Qualified buyers should have little trouble getting
financing. No one can predict for sure where rates will go, but history
indicates that low rates do not stay low forever. Rates can, and do
change. Increases may move payments from affordable to prohibitive.
Waiting for lower rates is often not prudent.
- Personal Wealth Building – For most Americans, homeownership is a
primary source of net worth and an important step in accumulating
personal wealth and assuring financial security. Today, even though
property values have declined in some markets, Americans have a total
of $9 trillion in equity in their homes, and for most Americans home
equity represents the largest share of their net worth.
Not only can homeownership be a stepping stone to greater financial security, it provides a permanent place to call home and great personal satisfaction. Research has shown that homeownership results in a wide range of social benefits. This is not limited to individual households. It strengthens the nation’s communities. It is a cornerstone of the American way of life.