TOP REASONS FOR BUYING A HOUSE AFTER YOUR READY AGAIN
- Ownership Costs are Dropping Below Rental Costs
Since 2009, the average monthly mortgage principal and interest costs have fallen below the average rental rates, and the gap is wider than it’s been in the past 22 years. With so many that have come out of owning and back into renting, due to foreclosure, shorts sale, and bankruptcy, it is driving the rental market and rents have been rising consistently.
- Houses Have Never Been More Affordable
Affordability could reach a generational high during the next three years because of low home prices and rock-bottom mortgage rates, helped partly by the Fed’s very accommodative monetary policy. But this policy won’t last forever.
- Sellers are Still Very Motivated
For you, this means a lot of choices in buying a house, negotiating power, and smart sellers are fiercely competing for buyers, in both terms of price and by fixing the condition of their homes.
- Home Ownership Remains at the Core of the American Dream
A 2010 National Association of Realtors survey reveals that 74% of all renters still aspire to own a house. And a recent Fannie Mae study also confirmed these results. Once the majority of these renters work through their individual foreclosure, short sale, and bankruptcy waiting periods and repair their credit reports, there will once again be a surge in sales based on this sentiment as well as favorable tax deductions. Buying a house ahead of this surge would be wise to save on price and build equity faster again.
- Mortgage Rates are Still Near Historically Low Levels
It’s hard to imagine interest rates on mortgages going much lower, and when they start to inch back upwards, monthly payments will start to inch back up as well.
