Your best life now | neighborhood supplement
If you’re wondering whether or not now is the time to buy a home, the answer is definitely yes. At least financially speaking, it is. Interest rates have started to rise, but they are still historically low. As I write this article they are still in the 4-5.5% range depending on your credit score, how much down payment you would make and even the price range of the house you you consider.
Articles from economists and real estate experts all say that you shouldn’t wait to buy. Even with rising interest rates, they don’t expect house prices to fall. We have reached a new normal price plateau. The exponential rise in house prices should slow down, but the prices themselves are not going to come down. If you want a bargain, now is the closest thing you’ll get in the next two years. Housing demand is expected to remain strong.
Some would warn that we are in a bubble economy and bubbles are bursting! Another consideration; there is a limited supply of housing choices, including new construction. The limited housing supply is not going to ease any time soon. Builders can’t build fast enough and materials are scarce. In addition to limited materials, there is a shortage of employees. The many “help wanted” signs and job postings have crept into every area, and there just aren’t enough bodies.
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The previous economic downturn was partly due to lax lending practices and far less oversight than today. Today, lenders and buyers have many checks and balances to ensure that a buyer is well qualified for the mortgage they are taking out. And finally, the volume of cash buyers in the real estate market has never been higher. Buyers use savings, retirement funds, stimulus funds and the like to finance a purchase. The competition may be fierce, the costs high, the interest rate historically low, but with the satisfaction of knowing that at worst we are on a new value plateau, you can live your best life NOW.