Motivated to Move
That being said, it doesn’t mean I don’t have the compassion to have your best interests at heart when helping you decide if now is the right time to purchase a home. Honestly, if it’s not the right time for you to purchase a home, or at least the home you want, I’ll be the first to let you know.
Of course, what many buyers get hung up on is the fear of the unknown when it comes time to purchase a home. It’s only natural, as this is one of the biggest decisions one can make in their lifetime, and there is a lot at stake in making this decision. Many people have seen what’s happened to property values in the past few years, so naturally some potential buyers may have a hesitance to purchase until they feel things are more stable. But while there is an element of risk in any investment, overall, the decision to own property is a sound, solid decision that will add to your overall financial portfolio.
What happened in the past few years with property values goes beyond the normal growth in equity. On average, property values increase 3 to 5% per year under normal circumstances. What began happening in the late 90s through the middle of the first decade of the 21st century is that speculation on mortgage-backed securities (unfortunately) caused an inflated housing market where property values in some areas of the country increased 25-50% in a very short period of time. Of course, all good things come to an end, and this, combined with the free flow practice of subprime loans being given to unqualified buyers, the market….er…shifted…to say the least.
In the past few years however, the market has begun to stabilize. Most mortgage companies have undergone transformations to where they provide loans to more stable and qualified buyers. They are also clearing out their inventory of Real Estate Owned (REO, or bank owned) properties. This is resulting in what economists predict as a final rally in the real estate market.
So what does this mean to you?
Don’t forget that interest rates are at historic lows (As of this writing they are back just below 4%), and housing rates are still very reasonable, but predictions are that this year will see a slight rise in inflation rates, which may result in a slight rise in interest rates. I’m not here to push you into anything, I just want to give you the truth about the market and let you make up your own mind as to whether you want to take advantage of the current real estate market.
So, what questions do you have? How can I help? Don’t hesitate to contact me and I will give you the real answers with no strings, and no obligations.