Friday, August 27, 2010

I think NOW is the time to buy!

Are you waiting to make that purchase, waiting for the best interest rates, and the 2007 recession to end?  Well... I think now is a great time to purchase.  I can't believe the great interest rates that are now at 4.8% for a 30 year mortgage.  There's also an abundance of homes on the market for sale. 

I know that consumer confidence is down and job security concerns are up... but, I think now is a good time to buy!

Real Estate markets are cyclical.  Between 1981 and 1984 there was high inflation... remember those 15% to 20% loans for a 30 year mortgage?  (I was looking to build my first home during that period).  Well, during that period, home prices were rising just as high and fast as the interest rates.  A loosening of lending restrictions drove prices higher as demand to purchase these homes increased.

Well... could this be the beginning of a similar scenario of "pent up" demand for housing?  The loosening of those lending standards created that flurry of home buying during "81-"84"... which drove home prices up.  Interest rates will most likely go up as the demand goes up.

Consumers/homebuyers, have been "fenced sitting"... waiting for rates to hit bottom.  Home supplies have been on the market for 6 months to a year, and appraisals have adjusted.  This soft market should be an opportunity to buy! 

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