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Updated:         June 3, 2018

In the past we have come to believe that if interest rates increased, home values were more likely to plateau or decline. The fact that both interest rates and home values are presently increasing at the same time is a new phenomena. In light of this fact, it may sound like “just so much real estate hype” to say that there are still some compelling reasons to strongly suggest that this is an excellent time to buy a home. If you take five minutes and read this notice and I think you will agree. Here’s why:

LOW INTEREST RATES:      Interest rates have continued to adjust slightly (both up and down) but are currently trending upward. We have experienced low home interest rates for the last half decade or more and, in spite of the upward trajectory, rates remain historically low. While no one knows with any accuracy what rates will do in the future it seems unlikely that they will decline in the near term. Thus, one might be cautioned that the longer one waits to take advantage of the still historically low rates, the greater risk that they will increase, especially as inflation threatens going forward.

REDUCTION IN INVENTORY:  As interest rates have adjusted, both up and down, home inventory has generally declined. This lack of inventory is credited with keeping home values elevated as competition among would-be buyers has become more frequent. Never the less, buyers can still purchase at a reasonable price and profit from the low interest rates and future appreciation. Real estate is almost always a good long term investment. But, be careful. You want to buy at market value but by trying to bargain too much, one could lose out in the long run in this hyper competitive market.

TAKE ADVANTAGE OF POTENTIAL FUTURE APPRECIATION:  The economy typically moves in cycles. Home values are appreciating and this seems like it is still a good time to buy in order to profit from home ownership.  By remaining out of the market, or renting, you may give away potential appreciation. If you have considered selling your present home and “buying up”, don’t hesitate. Don’t try to hold out for the maximum price on your sale. Remember that acting quickly is likely to result in your being able to purchase at a lower price and with a lower interest rate.

TAX ADVANTAGES AND INVESTMENT:  Our personal homes still represent the best tax shelter and investment that most of us can afford. The tax laws have retained all of the benefits for home ownership.  After considering the “tax shelter” benefit, many are surprised to learn that owning a home can cost little more or even less per month than renting.  

INDEPENDENCE:   Ownership frees you of dependence upon a landlord, eliminates the worry caused by rent increases, and allows you to “create” your own living environment to meet your family needs. Most homeowners will say that there is nothing like the emotional well being provided by owning your own home.

So, this remains a great time to purchase your home. Waiting for prices or interest rates to decline could be a big mistake. The best place to start is by getting pre-approved for a loan.

QUALIFYING FOR A LOAN:        Qualifying for a loan has become a bit more flexible and there is an array of loan products now available to meet motivated buyer’s purchase needs. While the options for those with past credit difficulties have declined, options still exist and this is an excellent time to strengthen one’s credit profile. That doesn’t mean that everyone is capable of buying a home, but you could be surprised.  

A FREE counseling session, a credit report and a few pieces of documentation can allow you to be pre-approved for a specific loan amount.  Then, you can purchase a home, knowing in advance that you have the loan funds available.  At the very least, such a meeting may provide a “road map” to what must be done to be able to purchase a home in the future.  You are urged to do this before you search for the “right” home to buy.

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