Lately, many of the real estate headlines are about how it’s the best time in history to sell your home. While that’s true, here are a few good reasons why it’s also a great time to buy.
Interest rates are at all-time lows.
People buy payment; they don’t buy price. They don’t necessarily care how much a house costs, but they care about how much it will cost them per month. You are going to get more money lent to you now, with less to repay than you would when rates go up.
For example, a person with a $300,000 loan at today’s interest rates of 3% would pay $750 less per month in interest than they did in 2000 when interest rates were 8%. There are quite a few other things to do with $750 per month than give it to the bank.
Benefits include tax breaks, building equity, and hedging inflation.
Many home buyers who have made their third, fourth or fifth offers on homes with no success may be getting discouraged, as they see home prices rising and are concerned they’re paying too much.
However, real estate values tend to run in ten-year cycles, with appreciation of 3% per year. Home values were cut in half during the 2008 financial crisis. Now, more than ten years later, they are ahead. Prices recover, equity is built, and real estate is an excellent hedge against inflation.
Long & Foster real estate agents can help disarm and interpret the news for their clients to make informed decisions. If you’re planning to buy or sell a home or have questions about this real estate market, please contact your Long & Foster agent.
For more information, visit www.longandfoster.com.