Based on prices, mortgage rates and soaring rents, there may have never been a
better time in real estate history to purchase a home than right now. Here are
five major reasons purchasers should consider buying:
Supply Is
Shrinking
With inventory declining in many regions, finding a home of
your dreams may become more difficult going forward. There are buyers in more
and more markets surprised that there is no longer a large assortment of houses
to choose from. The best homes in the best locations sell first. Don't miss the
opportunity to get that 'once-in-a-lifetime' buy.
Price Increases Are on
the Horizon
Prices will bounce along the bottom this winter. However,
projections call for appreciation after that. Several studies and surveys call
for price increases over the next few years starting in 2013. One such
survey<http://www.kcmblog.com/2012/06/26/experts-say-housing-prices-are-about-to-turn/>
shows that prices will increase over 10% by 2016.
Rents Are
Skyrocketing
Rents historically increase by 3.2% on an annual basis. A
study<http://www.kcmblog.com/2012/02/08/where-are-rents-headed/>
issued earlier this year projects rent increases of 4% for the next two years.
Trulia recently reported<http://www.forbes.com/sites/trulia/2012/07/03/rising-home-prices-cant-keep-up-with-rent-increases/>
that rents this year have actually shot up by 5.4%.
Interest Rates Are at
Historic Lows
Federal Reserve Chairman Ben Bernanke has kept interest
rates low in an effort to stimulate a lethargic economy. He understands that low
rates will help housing and housing is a key to bringing back the economy. As
the economy approves, the need to keep rates low will no longer exist. The
30-year-mortgage rate before the financial crisis was 6.57% (August
2007).
Buy Low, Sell High
We would all agree that, when investing, we
want to buy at the lowest price possible and hope to sell at the highest price.
Housing can create family wealth<http://www.kcmblog.com/2012/01/04/comparing-real-estate-to-other-investments/>
as long as we follow this simple principle. Today, real estate is selling 'low'.
It's time to buy.
http://www.BlueRidgeWaterfront.com
http://www.NathanNicholson.com
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