Welcome to the year 2012, the year of the “home buyer.”
Perspective is everything. That can certainly be applied to our current real estate market in the US. If you are a seller, who purchased your home in 2005-2007, the current real estate market probably gives you indigestion. Your home is likely worth much less than you paid for it, and you are “upside down” in your mortgage.
If you in the market to purchase a property, things are looking great! Here is what we know:
- The bursting real estate bubble, along with a slew of foreclosures, has suppressed prices to levels not seen since 2000-2003.
- Interest rates are still near record lows, around 4% for a 30-year fixed. Rates are even lower for a 15 year fixed rate.
- The worst of the housing crisis seems to be behind us.
- Rent increased in 2011, and that trend is expected to continue in 2012.
2012 will be a great time to buy a property. In most cases, you can pay less each month for a home you own, than you would to rent a comparable property. Not only is your monthly payment a little less, you are paying down principle each month, and building equity. As rents continue to rise, you can rest assured that your mortgage payment will not (if you have a fixed rate mortgage). Taxes and insurance on your property may increase, but your mortgage payment will not.
Most economists are reporting that the housing market should stabilize in 2012. There are still a lot of foreclosures that need to be processed. The speed an efficiency that bank’s process the foreclosures (foreclose on the property, and sell on the open market) should increase in 2012, however the low interest rates should help keep prices stable.
No matter if you are a first time home buyer, purchasing an investment property, or buying a second home, 2012 will be a great year to enter the market.
For insight on the top 5 reasons to own a home, see this Quicken Loans.com article: http://www.quickenloans.com/blog/top-5-reasons-buy-home-2012
For more information, or to contact me with any questions, visit www.ToddTurcotte.com