Is Now the Right Time to Buy a Home? - PropertyBlawg

Is Now the Right Time to Buy a Home?

by Khezia Dajao on September 3, 2012

Home for Sale Carson, CA 90745 3 Bedroom 1 Bath & Huge Bonus Room with Fireplace

Is Now the Right Time to Buy a Home?

For the past couple of years there has been a lot of debate and concentration on the economy and the housing market. While many homeowners have seen a considerable decrease in property values, buyers who want to own a home in a prime location cheap, may need to do so now. For those who want to flip a home or buy rental property, you may want to wait until the housing market rises again. If you are looking for a family home that will one day return to its proper value; you should start shopping now.

Low Interest Rates and Mortgages:
Today we are seeing some of the lowest interest rates and mortgages in history. Those who shop around can find interest rates as low as 3.5-4%. Combine the low interest rates with low property values, you may find your dream home to be a lot cheaper than you ever imagined.

Property values are still sliding, in some areas as much as 18-20% since 2011. This is creating an opportunity to purchase a great home at a great price if you intend to live in the home. Banks are also approving those with less than perfect credit for mortgages at lower rates than previously. Those who have been afraid of purchasing their first home due to imperfect credit should now take the plunge and get into their own home.

However, even with the low interest rates and mortgages, it is suggested you budget tightly and determine if you can afford the overall cost of owning a home. Aside from the mortgage and interest rates, there are other factors to consider prior to buying. Upkeep and maintenance on your home is one factor that many fail to think about when buying their first home. Unlike when you rent, if something breaks in your home, the repair costs come out of your pocket.

Will Property Values Rise?
There is a lot of speculation as to whether or not property values will rise soon. Some experts claim we will not see a rise until spring, while others expect property values to decrease another 15%. Where the economy is concerned, nothing is ever written in stone. There are a lot of variables that affect property values and the economy in general.

If employment begins to rise and consumer spending increases, there may be a spike in property values as more people will start buying homes again. This is one of the reasons the state of the economy is easier to determine around the holidays. The end of the year spending shows a glimpse into the year to come.

If you are determining whether to buy now or wait and see if property values decrease, you may find it hard to get in at the right time. If you don’t want to miss out on a great price, determine if you can afford your home with the current mortgage and interest rates and buy now, otherwise you may find it too late to get a great deal.

Federico Regan is a freelance writer who writes advice for those looking to buy a home. If you are in the market for a house, you might consider getting a homeowners loan from Net Loans.

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