Under these circumstances, I feel buying is best for your life if you feel you can stay in that home for a while and send your kids to the same school while making a living.
With the job market changing so much, you could find you work far from home or are not able to get a job in your field but you still want to stay in the neighborhood for the children. It would be nice if someone living in the home contributing to the mortgage had a steady income such as social security, rental income, work from home, local business.
While owning used to offer a feeling of security, it may now be the opposite and be a weight to your mobility. Funny how things change in just a few years. Some people who thought a marriage, home and children would add to their level of security have found the exact opposite.
There are several properties on the market...so you have lots to choose from in a home! Then add in the supply of homes being greater than the demand, the buyer has great negotiating power!
The bonus is interest rates are low! This gives buyers more buying power!
So I say with all those ingredients ... if you are ready to make a move...now is the time to get off the fence!
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
YES! If you are wanting to improve your quality of life and influence within the community.
YES! If you find the right home in the right location. As an end user, real estate will always be a good long term investment..
YES! if you want to get ahead of the consequences of inflation related to interest rates.
No! If you are financially strapped and MUST get a 3% down home
No! If you are not able to cover ownership costs that threaten to increase by 35% in the next five years.
No! If you are considering using Bank of America to acquire a mortgage.
No! if you think it will be difficult to pay a mortgage AND $6,000 to $13,000 annually for health insurance.
The same experts (big bank economists) who are saying prices will bottom out the first half of this year are working for the lenders who are now more aggressively pushing their huge "shadow inventory" backlog into the market in the form of short sales and REOs to drive those prices down. So they make their projections a self fulfilling prophecy. At same time there is every indication that we will see interest rates rising over time. Low prices now, combined with progressively higher interest rates as time moves on makes â€œnowâ€ the best time to buy. Remember a 1% increase in the interest rate is a 10% reduction in the mortgage amount someone can afford.
It is certainly an optimum time. Rates are still low. Price levels in some of the communities in my market have not been seen in a decade. Buyers have the advantage in choice, price and negotiations. If not best....pretty darn good.
Millie C Lumpkin, SFR
Century 21 ProTeam