A recent Wall Street Journal article suggested that despite weak job growth, increased foreclosure sales, and likely decrease in home prices in the upcoming months, most economists still believe that the long term outlook is encouraging for the housing market. Moreover, numerous positive signs evidence the housing market’s possible rebound. The article also points out that: “While overall home prices fell by 7.5% in April over the same period a year earlier, according to CoreLogic, a Santa Ana, Calif., provider of real-estate data and analytics, if you exclude distressed sales, prices were off just 0.5%. So if you are in a market that isn’t battered by foreclosures, you may be close to a bottom already. “
1. Mortgages are cheap: According to Freddie Mac the interest rates are currently at a 50 year LOW! While credit is still tight experts expect lenders to ease borrowing standards over time.
2. Buyer’s Market: There is a large inventory of affordable homes available at bargain prices.
3. Tax Savings: Mortgage and Real Estate taxes can be tax deductible!
4. Future Security: In addition to tax savings you are essentially paying yourselves and building equity over time which provides the ability to live free upon retirement.
5. Moody’s Analytics: Predict that the number of distressed sales will begin to fall in 2013, and that prices will begin to edge upward then.
6. Increased Affordability: In many markets it is now cheaper to own than rent.
7. New Homebuilding: Is stagnant, hence the current supply is not likely to get any worse.
8. Real Estate Agents are hungry for your business: You are likely to work with an experienced and motivated agent who can provide complete and undivided attention throughout the process resulting in a great buy!
9. Demand: The US population is expected to grow by more than 100 million over the next 40 years, translating into an increase of 40 million new families looking for a home.
10. Baby boomers: Will be looking to downsize, families creating demand for smaller homes and providing a supply of larger homes for growing families.
By Shamila Ahmed
Other Article sources:
Arends, Brett. “10 reasons you should buy a home now” The Wall Street Journal