Tuesday, May 10, 2011
Why Now is the Time to Buy
Considering how the economy has been over the past few years, many people view the optimistic predictions about the Austin real estate market cynically. However, what can't be denied is that economists are encouraging people to buy now and are predicting that we will see a strengthening economy by the end of 2011. Charles Plosser explains that “[c]onsumer spending continues to expand at a reasonably robust pace, and business investment, particularly on equipment and software, continues to support overall growth.” Furthermore, “the nonresidential real estate sector is likely to improve as the overall economy gains ground.”
So what does this mean? Simply put, you only have a few months left to buy at rock-bottom prices with low interest rates. If the idea that interest rates are low shocks you, you would be surprised to learn that, in reality, interest rates are the lowest they've been in the past 50 years. MoneySense Editor Heinz Bulos comments that “[a] good time to buy a [. . .] home is when interest rates are low, like this year. This will allow you to lock in a low, fixed rate for a 25-year mortgage.”
And if you're worried about those mortgage payments, look around and you'll notice that there's been a big drop in prices “on the order of 30% nationwide since 2006, and as much as 55% in the hardest hit markets,” as CNN informs us. But remember that part about how “you only have a few months left to buy at rock-bottom prices”? That's because these low prices are mainly because of the incredibly low demand in the real estate market right now. While you can currently buy a house at the fraction of the price you would have paid years ago, you should go ahead and buy now to make sure that you can get that low price before the market fully rebounds.
What you want to take away from this is that, after all of the anxiety of the past few years of economic rockiness, the public is regaining their faith in buying real estate. If you want to get the best deal you should beat the crowd and buy now. So get out there and grab it while you can!
James Kim writes for Austin Real Estate service Homecity.com. HomeCity combines powerful online Austin MLS search technology and other online tools with personalized real estate services to provide clients with the knowledge they need to make the right buying and selling decisions.