Is Now Still a Good Time to Buy Real Estate?
Filed under: Mortgage News
Since most real estate prices are elevated right now, many people are asking the same question: is it still a good time to buy real estate? Whether you are preparing to buy your first home or you feel like it is time for an upgrade, it is important that you understand the market trends to get the best deals for your family.
There are two things that you should consider:
How Long Will You Own the Home?
Short-term real estate purchases can be scary. It is expensive to buy or sell a house because you will have costs associated with the transaction. Everyone has their own opinion on what “short-term” means, but often this timeframe is referring to a turnaround of only a year or a few years.
If you are planning to keep the home for five or ten years, then you will probably be ok. Look back to people who bought in 2006. There are some people who are still under some water in those transactions, but the vast majority of people are back in a great place with their home ownership. The people who bought with riskier loans at the time are the people who might continue to struggle today. So, if you are planning to buy right now, then it is important to be sure that you choose a trusted lender and safe financing terms.
Now that we are 10 years out from those changes in the real estate industry, the market has bounced back. The benefit is that the market is much more stable now, compared to 10 years ago.
Keep the Long-Term Picture in Mind
It makes me think about my mom who bought the house that I grew up in for $69,000. You ask her about it, and she talks about how expensive it was at the time. She felt like she had just barely wedged into it! Now it is almost 40 years later, and it is easy to see that it was the most brilliant move ever. She still owns the property, and the value has increased drastically.
In almost every market, it doesn’t matter. Historically, everyone feels like they are buying a home and it is expensive. But, then as time passes, the value increases. The nice thing about California is that the taxes get locked in, so your property taxes remain the same while your home value increases.
If you are ready to buy a home, then talk to one of the leading lenders in the area: Bill Provost at Franklin Loan Center. (760) 282-4415 We are here to help!
