WHY NOW IS A GOOD TIME TO BUY…
Almost five years past its peak, residential real estate continues to weaken, with prices and sales down and inventories rising across the U.S. For sellers, this is ghastly news, of course, but buyers have mixed feelings. On the one hand, after years of bidding wars, instant offers without home inspections and even penning poems to convince sellers to hand over the keys, it's delightful to finally have choices and negotiating room. On the other hand, it's a bit frightening to make a commitment now, when there's a chance that prices could drop even lower.
Caught between opportunity and risk, what's a buyer to do? Here are some ideas to keep in mind in our current "buyer's market":
Buyers, not sellers, set prices. This may seem counterintuitive, but all a seller can do is suggest an asking price. The real price is whatever a buyer pays for it.
Mortgage interest rates are close to 40-year lows. Low interest rates allow a substantially larger population of Americans to own their own homes.
Inventory is once again on the decline. Taking advantage of the variety of homes available on the market today allows buyers the unique opportunity to find the home of their dreams. Expanded selection combined with low interest rates offer buyers an opportunity that may never be available again in their lifetime. As more sellers become discouraged and take their homes off the market and new home builders halt further home building until standing inventory is sold, there will soon be less to choose from. The laws of supply and demand will see prices rise as inventory shrinks.
Comps may not matter now. When markets are in upheaval, either up or down, recent sales of comparable houses are of less value than they are in more stable times. So take a look at public records, which are now often listed on Web sites, as well as Internet tools like Zillow and Trulia. But take them all with a grain of salt. They may be guiding sellers as they set their asking prices, but they don't necessarily indicate what a seller will accept, since the market is in flux.
Timing the market isn't possible. Although many economists predict that nationally, housing still has a way to go to reach bottom, you don't have to wait for that to happen to get a good deal. In fact, it's better to buy when housing is trending down than when it reaches the floor, since at that exact moment, the balance of power begins to shift toward the seller again. So if you see a house you like and can afford, make a bid now. And don't worry about insulting sellers with a "lowball" offer. They may be desperate to move because of a new job, marriage, divorce, overstretched bank account or other motive. Yours may be the only bid they've received in months and they may be very glad to have it.
Real Estate is a Great Investment. Homeownership is a safe, secure way to build long-term wealth. The national median price of homes bought ten years ago has increased 88 percent. The number of US households is expected to increase 15 percent during the next decade, creating a continued high demand for housing.
CALL TODAY AND LET US HELP PUT YOU IN THE HOME OF YOUR DREAMS!! REMEMBER, THERE IS NO COST TO YOU FOR OUR SERVICES, BUT THE REWARDS WILL LAST A LIFETIME!