If you've been pondering a home purchase, there are some good reasons why now might be a great time to proceed.
prices have turned the corner. Home price trends vary by market; however,
nationally, on average, home prices are rebounding. Although no one can predict
the future, homes prices appear to be heading up.
2. Homes are very affordable. Homes are still very affordable
relative to household incomes. This means you can buy more house for the money
now, than you could in less affordable times.
3. Mortgage rates are near historical lows. Mortgage rates inched
up recently, but they're still near historical lows.
4. Buying remains cheaper than renting. A 2012 study found
buying a home is 44% cheaper than renting in the 100 largest metros. Even with
this year's mortgage rates and home prices, there is still a significant cost
advantage to buying versus renting.
5. Fewer house flippers to compete with. As home prices
recover, house flippers leave the market. These are investors looking to buy a
house at a rock bottom price and then quickly sell, or flip, it. They're tough
to compete with because they often offer sellers cash deals.
6. More inventory to choose from. Fewer house flippers can
mean there's more inventory to choose from and less pressure to close a deal
because of other pending offers. Again, the situation varies from market to
market, but you may find there are more homes to see and less pressure to buy
in the neighborhoods where you're looking.