Not only could this be a great time to buy a house, it could be the best time in years. Home buyers seem most interested when prices are high. We should be more interested in buying a house when they are selling for less. That’s right now.
Let’s suppose you have a home that you owe $150,000 on, which was worth $210,000 just three years ago. Maybe values have dropped by 10% in your area of the country since then, so it’s now worth $189,000. It might seem that this is a terrible time to sell. On the other hand, if you had plans to move into a larger home at some point, this may be the best time.
Let’s suppose you have a home that you owe $90,000 on, which was worth $180,000 just two years ago. Maybe values have dropped by 20% in your area of the country since then, so it’s now worth $144,000. It might seem that this is a terrible time to sell. On the other hand, if you had plans to move into a larger home at some point, this may be the best time.
If you have the means, you might want to buy the a home now without selling your existing house. You can rent out your current house and wait for prices to go back up and get more for it. But if you need to sell to buy, now is the time.
It’s been a long time since there has been such a steep decline in the prices of homes. It’s what every other industry would call a sale, but we call it a correction in the real estate industry. Of course there is no guarantee that we have reached the bottom on prices, but at the very least you know you are paying less than you would have a couple years ago, which is always a good thing.
What if you’re a first time home buyer? It makes sense to buy something when it’s on sale – even if it’s a house. In addition, interest rates are still low and although it’s tougher to get financing now, this isn’t all bad. You can feel better understanding that banks and other lenders are no longer allowing borrowers to get mortgages they can’t afford.
Houses on sale, interest rates still near at an all-time low, and banks no longer pushing mortgages that you can’t pay for – this may be the best time to buy a house.
For more material on Buying and Selling your Home Visit:Royal Lepage ProAlliance or Port Credit Real Estate
