Image by: wonderlane
By Tony Melino
Current homeowners are upset because they are still upside down when it comes to their home that they purchased before the recession. Don’t let them scare you into not purchasing a home. The economy is always going to fluctuate and it’s on the rise.
The market will never be this good for home buyers for a while. Let me repeat that. This is a buyers market; the prices will never be this good for a while.. until the next economic fall.
So let’s get into why 2013 is projected to be a good time to purchase your home.
Interest rates are still at a record-breaking low rate. They will be going up soon but they are remaining at the average 3.68%! If you are in the position to buy, you’ll never see this kind of rate again. There’s a reason why they call it record low rates.
On top of the interest rates; unemployment rates are still averaging around 6%-7% and still up into the low 10%’s. There is an incredibly huge demand and there will be a bigger demand to buy as the economy rises. Housing prices are already starting to rise – it’s just a matter of time before they rise quickly.
The world’s largest banks have set aside over $25 billion to help fund loans and foreclosure modifications. That means that it’s just a matter of time before we hear about new rules when it comes to purchasing your home and great kickbacks!
They also have improved their standards when it comes to issuing loans. They can no longer have “risky” features such as extending past 30 years. They also can’t use language such as “interest only payments” and have the principle amount increase.
Rent Is Getting Expensive
The longer you rent an apartment; you’ll be witnessing the rise of rent. It’s not a cheap feat to just be throwing money away to your landlord. Yes, you don’t have to worry about maintenance but it’s never truly your place. You can’t paint the walls or remodel… even if you wanted to.
In cities like Seattle, Chicago, and San Francisco; they have no rent control. Those prices will continue to rise and eventually people will have to move. They won’t be able to move into another apartment building because rent is already high and to have it go up each year would mean they would be evicted.
The only thing to do is to invest in a home. The mortgage rates are low, the inventory is starting to pick up, and all signs are pointing to purchasing a home.