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Today's Real Estate Market:
The Best Time to Buy is Now
The latest economic forecast suggests that the real estate
market correction is coming to an end, offering consumers a
once-in-a-lifetime buying opportunity.
The time for prospective buyers to enter the market is
right now: and here's why:
Mortgage interest rates are
close to 40 year lows.
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The average 30 year fixed rate mortgage rate
remains near 40 year lows. Currently at 6.4%, this is more than an
entire percentage point under 2000 levels.
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Lower interest rates allow a substantially larger
population of Americans to own their own homes.
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For example, with a $250,000 mortgage, a rise in
interest from 6.5% to 7.5% means an additional $2,000 in annual
payments. This may boost currently available home out of financial
reach for potential buyers. Today's low rates offer a unique
opportunity for buyers.
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Inventory
is once again on the decline.
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In recent months, there has been a record inventory of
nearly 4 million homes on the market. However total housing inventory
levels fell 2.4% at the end of September to 3.75 million existing homes
available for sale. As inventory continues to decline, the selection of
homes once again will become limited. For prospective buyers, there may
never be a better time to buy a home than right now.
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Taking advantage of the variety of homes available on
the market today allows buyers the unique opportunity to find the home
of their dreams.
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Expanded selection combined with low interest rates
offers buyers an opportunity that may never be available again in their
lifetime.
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With the Market
Correction Nearing an End, Home Prices Are Expected to Rise Again.
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Research indicates that home prices will not go any
lower. While certain local markets may see limited price declines,
the national picture remains bright. Pending home sales were up 4.3%
in August, an early indication that home buyers were returning to
the market.
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The national median home price will rise 1.6% in
2006 and prices are expected to rise again in the first quarter of
2007. As prices begin to rise again buyers who do not act now could
be making a costly mistake.
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Real Estate Remains
the Best Investment Available.
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The average home purchased five years ago has
appreciated 49%. Even with the recent 2.2% decline in the median
home price, this still equates to a more than 45% return on
investment for the average homeowner. Media reports of a vast market
decline are deceiving, and consumers will benefit from purchasing a
home now before prices begin to rise once again.
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According to
Forbes
magazine (using U.S. Department of Housing and Urban Development
statistics), U.S. real estate sale prices increased more than 56%
from the beginning of 1999 to the end of 2004. The S&P 500 index
dipped nearly 6% during that same period.
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While year-to-year fluctuations are normal, real
estate remains one of the best performing and consistent long-term
investments. Median existing U.S. home sale prices have increased on
average 6.5% each year from 1972 through 2005, and 88.5% over the
last 10 years combined. For consumers looking for long-term and
stable growth rates, real estate is still their number one choice.
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Equal Housing Opportunity. This material is based on information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete and should not be relied on as such. This offering is subject to errors, omissions, change of price or withdrawal without notice.