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The Time to Buy a Home is NOW

Posted on October 21, 2011 by tim in Market Update

Guess what? Now is the time to buy a home! That’s right. Not sure about it?  Check out what the Wall Street Journal and Forbes have to say recently:

The Wall Street Journal

 Last week, in an article entitled “It’s Time to Buy That House” the WSJ told subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers:

“Now could be the best time in history to buy a home.”

Forbes.com

“The previous declines in house prices and more recent drop in mortgage rates to record lows created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”

“If rents simply kept up with inflation at a 3.2% annual increase, a $1500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation)”.

“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage. How much less would you have to save for retirement if you didn’t pay the mortgage?”

The point? When these iconic financial sources say that it now is the time to purchase a house, perhaps now is the time to purchase a house!

Lindsay Annett Shapiro lindsay.shapiro@cbws.com Real Estate Agent, Coldwell Banker West Shell – Cincinnati, Ohio


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