Why is it a Good Time to Buy a House?

1. Why is it a Good Time to Buy a House?

2. Why is it a good time to buy a house? • I know what you’re thinking: • “This is coming from a REAL ESTATE COMPANY. They cannot be objective!” • Well . . . we’re not! (We’d LOVE to help you buy!) • But what we have done is put together information from objective sources about today’s market.

3. (January 1, 2000 – March 1, 2011) Return on Investment Source: MSN Money.com, Case Shiller MSN Money.com, Case Shiller Despite the loss of home value in the past few years, it’s important to look at the returns on investment over a longer period of time. Real estate has significantly out performed various portions of the stock market in the past 11 years. Consult with a real estate agent to know if you’re making a good buy. They can research comparable homes pricing and the history of value on the home you are interested in.

4. Cost vs Price Cost versus price can be confusing. Price is only important the day you buy it and the day you sell it. However the timing of when you buy can really influence the cost. Mortgage interest rate are currently at almost unprecedented lows. A FHA mortgage can be obtained as low as 4.25% The likelihood of rates going lower is very unlikely.

5. 30 Year Mortgage Rage Source: Federal Reserve 2006 March 2011 Over the past year, rates for a 30 year fixed mortgage have begun to increase. In the last few weeks, the rate has again dropped. However, the general wisdom of economists tell us they can’t stay low very long. The current projections from many sources are that we will see steadily rising rates over the next year. Most sources predict anywhere from 1 to 1.5% higher than today.

6. Price is the same, it just costs more Difference in mortgage payments This is an example of what happened to rates from November 2010 to February 2011.

7. Additional cost for waiting Although $83 may not seem like much, in this case, it amounts to about $1,000 a year in increased cost and almost $30,000 over 30 years. If you’re waiting to buy because you’re focused on Price you may be disappointed in your overall Cost. Buyers need to remember not to think short-term – waiting for a lower price now may mean paying a higher cost later.

8. 30 Year Mortgage Rates Source: Freddie Mac After stimulus Prior to stimulus 2006 March 2011 In this chart you can see what happened to interest rates after the government created the 2010 tax stimulate the housing industry. Although none of us have a crystal ball to see the future, economic sources tell us rates will increase.

9. Wall Street Journal ‎"With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents…. . . the best low-risk buying opportunity out there today." Wall Street Journal 1/26/2011

10. John Paulson “If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”

11. 67% Say Time to Buy Is Now Source: Gallup 1/17/2011 “Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.”