Advantages of Buying a Home Now
Unlike in years past, home ownership is not something everyone wants anymore. In fact, these days many Americans cannot own a home because of a recent default or lack of capital. These realities matched with the lowest numbers for new and existing homes we’ve seen in years can make you wonder, “Should I even own a home?”
While the negatives of home ownership today are simple to point out, the benefits may not be so easy to see:
- Home Values: Though stable, home values in many states are still well under what they should be. This means that consumers who are looking to buy today are still going to see regular listings sell for under their appraised value. The result for these new homeowners will be increased equity once housing prices rebound fully.
- Interest Rates: I’m sure you’ve heard the buzz, “best interest rates in 50 years!” Well, it’s true. Interest rates today are low, very low. Even if you don’t qualify for the best rate, closing a mortgage in today’s market means big savings on your interest rate. Not a bad investment if you are looking at a 30-year mortgage.
- Buyers’ Market: The low number of both new and existing home sales takes some of the pressure off buyers. I’m not saying that you shouldn’t act quickly and be prepared early, but you should also understand that you have less competition today. Sellers may be more interested in you for this reason, so don’t be shy. If you’ve prepared properly, know what you can afford, and are honest, you should have an enjoyable experience both in looking and buying a new home today.