Infographic: When Americans Think the Housing Market Will Recover (Credit: truliavisuals)
Recently, on Fox Business I discussed the state of the housing market, which has been under scrutiny for the past few years. During the segment (watch the video here), I point out that while we can sit and analyze the month-to-month changes in housing sales and development; zooming in on such a short time frame does not give us an accurate picture of what is actually happening, and should not discourage those who are qualified and looking to purchase a new home.
Here are four reasons why the housing market is on your side:
1. Low Interest Rates - Our economy is seeing historically low interest rates. If you are a qualified buyer, now is the time to take advantage of these rates. Low interest rates translates to lower payments, making homes more affordable. The cost of owning a home and paying off a mortgage over a 30 year life span has never been lower.
2. Depressed Prices - The downturn on our economy has resulted in depressed property values. The low prices coupled with low interest rates create a great opportunity for a potential buyer. Builders will make deals to move inventory, leaving consumers with attractive prices. Foreclosures will continue to keep prices low for the short term future.
3. Consumer Confidence - Although our economic growth is sluggish, we are still seeing signs of recovery. Unemployment has decreased, and markets are showing signs of improvement. Consumer confidence is beginning to rise, and as it increases, prices will increases. Therefore, those who invest now will see capital gains. We are beginning to see bidding wars erupt in certain markets, so now is the time to take advantage.
4. Supply/Demand - There is currently an excess supply because of foreclosures, builder inventory and low demand on the consumer end. This translates to buying power for you, the consumer, allowing you the ability to negotiate the best possible deal.
Instead of a “sense of urgency” to benefit, the media frenzy surrounding the housing market has left potential buyers in fear of failure in the housing market, deterring them from moving forward with purchasing a home. However, you should not let this deter you from taking advantage of the opportunities that lie in today's market if you qualify
