If You Knew Then What You Know Now…
How many things in life would you change if only you could? We should have listened to our parents more or studied harder in school. We should have bought Apple stock in 2002 for $8.50 or gold in 2000 for $300. Who hasn’t heard someone say they could have bought an oceanfront lot in La Jolla for $30,000?
Is Now the Time to Buy Real Estate?
Years from now, when we look back at 2012, it might be clear that this was the time to buy real estate. Home prices are down nationwide 35-40% from four years ago, mortgage rates have never been this low and rents are rising. Fewer homes have been built in recent years to keep up with a growing population. There may never be a better time to buy homes than now.
Housing Affordability at a High Point
The housing affordability index, which is considered to be good at 100 has increased to over 200 for several months. Shrinking inventories and rising prices in some markets are causing the index to fall for the first time in years.
Real Estate Investors are Back In
This “buying opportunity” applies equally to acquiring a home to live in or to rent as income property. It is estimated that about one-third of the homes purchases last year were done by investors. It is reasonable because the positive cash flows far exceed most other investment alternatives.
What Will You Do?
Will you look back at 2012 and say you seized or missed the opportunity of the decade?
Check our our financial calculators and compare a home purchase to other investments, compare the true cost of renting vs owning, calculate a mortgage payment, and much more. See if this is the time to seize the opportunity present in our current marketplace.