Many of the top financial media companies have been telling their readers that now is the time to buy a home. The Wall Street Journal, Market Watch, Forbes and CNBC all have done stories explaining why now is the time to buy a home. There are a number of factors in place now that I have not seen in my 23 years in the real estate industry. The key factor for most potential home buyers is the fact that the cost to rent a home have been going up while the price to buy is way down. Historically lower interest rates and lower prices have make locking in low monthly payments a smart thing to do right now. “For most people their mortgage payment is the largest bill they pay monthly. Right now home buyers have the opportunity to lock in that cost for the next 30 years by taking advantage of current mortgage interest rates.” Buying a home may be your best hedge against inflation and also your best long term investment compared to other options.
One of the nagging questions some potential home buyers worry about is how much further home prices will fall. This is an important question but there may be a more important question to ask. What is my monthly cost of a home? While prices are likely to fall some more, locking in a 4% mortgage rate for 30 years may be the better long term decision. I believe buying a home while there is more inventory to choose from and low, low interest rates makes sense for those home buyers that have a long term outlook, just like it does for real estate investors. Our current real estate market is being heavily supported by savvy real estate investors who have known what the Wall Street Journal and others are just now saying…Now is a great time to buy real estate in San Diego.
