5 Reasons to Buy a Home Now! was the title of a recent post by the KCM crew.Â They put together a list of the top 5 reasons to buy a home now (full article link below). We agree, but have also added why SELLING now makes sense as well.
Here is the list, with some thoughts from us!
Why buy now?
- Supply is shrinking: The supply of homes on the market continues to decrease as buyers are taking advantage of the low rates and scooping up homes at record paces. For example, as of September 10th, Orange County had approximately 9882 homes on the market. That's a 26% decrease from the previous year. We are at a 7 year low of inventory and it is having a dramatic effect on the market right now.
- Price increases are on the horizon: Several studies and surveys call for price increases over the next few years starting in 2013. One such survey shows that prices will increase over 10% by 2016. We have already seen an increase in prices in our local market.... prices are back to 2007 levels in many neighborhoods.
- Rents are skyrocketing: Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported 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 the economy. He understands that low rates will help housing, which is key to bringing back the economy. As the economy approves, the need to keep rates low will no longer exist. As a point of reference, the 30-year-mortgage rate before the financial crisis (2007) was 6.57%.
- Buy low, sell high: When investing, this has always been the golden rule! Well, Real Estate is selling LOW...time to buy! As Warren Buffet said; "Be greedy when others are fearful and fearful with others are greedy". It's time to BUY!
Thinking of Selling?
Sellers should consider the above buyer urgency as the best opportunity for them to not only sell fast and create a multiple offer situation, but to purchase their NEXT home as well. Whether you are wanting to buy your dream home or down-size, now could be your time!
To get you top dollar in todays market we've integrated Prudential's Forward Pricing strategy. We use all marketing tools to bring you the MOST amount of buyers and competition to your home.
Want to see how we can sell your home over Appraised value?
Want to know what your home is worth now that prices are rising?
Did you know that Prudential Real Estate has the HIGHEST average sale price?
Contact us today!
This is truly a great time to consider both buying AND selling Real Estate. We are experienced, full-time Realtors who can help!
The Ervin Group