Tarbell.com > Articles > Article

Tarbell Articles
house

Now Is The Time To Buy!

Thursday, January 19th, 2012

LOW PRICES

Home Prices are Lowest in Years

National Association of Realtors reports that: “weak sales and rise in foreclosures pushed home prices down to their lowest level in nearly 9 years. Nearly 40 percent of the sales last month were either foreclosures or short sales, when the seller accepts less than they owe on the mortgage”

You Are in Control

  • With 3.77 million homes on the market, you have more options to choose from and more leverage while negotiating.

    • With prices so low and homeowners desperate to sell, now is the best time to buy a home.

    *Having an index of 100 means that a family with a median income has exactly enough to qualify for a mortgage for a median-priced home

    Homes Have Never Been More Affordable

    The graph shows that homes have never been this affordable in years and that it is a great time to buy.

    Although homes prices are very low and affordable, Standard and Poors/Case-Shiller Home Price Indices report they are showing signs of growth, so buy now!

    LOW INTEREST RATES

    Interest rates are nearing a fifty year low. Take advantage of these record low rates.

    Get Them Before They Disappear

  • Forbes reports that “as the economic recovery gains momentum, interest rates are expected to increase, making mortgages more expensive”
  • The government may soon no longer guarantee conventional mortgages. This will make it more difficult to get a 30 year Fixed Rate Mortgage, or it will become much more expensive to obtain.

    • Do Not Wait Any Longer

    MoneyWatch reports that waiting for prices to go lower could end up costing you. If you decide to wait to buy a home and interest rates increase by just 1.1% to 5.7% you would need home prices to fall nearly 12% to equal the same monthly payment as you would pay on a 4.6% mortgage.

    RENT VS. BUY

  • In 2010 rents increased nationally on average 4.2%
  • In Southern California for the first quarter, rents rose at an annual rate of 2.2% and in the second quarter they rose at an annual rate of 2.7%.

    • Why buy?

  • It is the better financial decision to buy a house
  • You will feel more secure knowing that your monthly payments will not change
  • The mortgage payments you make on your house will go towards building equity and they are tax deductible
  • According to Trulia, it's now more affordable to be a homeowner in 72% of major U.S. Cities

    • The Real Cost Of Home Ownership

    Owning a home is more affordable than you think. For example, on a typical monthly payment of $1,537 when appreciation and tax breaks are taken into consideration the real cost of ownership is only $653. That's a savings of $884 or 57%. You can afford to own!

    ATTITUDES

    Americans still have faith in homeownership

    Fannie Mae, Harris Interactive, and Pew Research Center each conducted nationwide surveys this year and found that many people still have a positive view on homeownership.