Over the past few weeks I have been asked several times, “Is this a good time to buy a house?” The complete answer depends on each individual situation, but in general there are several factors that indicate this is, indeed, a good time to buy. Here’s why:

  • Interest rates remain low. They fluctuate, of course, but as of today hover under 5% for a 30-year fixed loan.

  • While home prices generally are not as low as they were a year ago, especially in the “entry level” ranges, they are still far lower than at the top of the market. In some cases my clients are finding that their mortgage payments are roughly the same as paying rent. When you factor in the tax benefits, the picture looks even rosier.

  • For those looking for investment property, this is the first time in many years that an investor might break even or have a modest positive cash flow. Lenders will generally require a 25% down payment for investment property.

  • Many times bank-owned properties have a lot of deferred maintenance but are good bargains. If you are willing to put up with the inconvenience and extra work of buying a bank-owned property, you can move in with instant equity.

If you want to sit down and “run the numbers” just give me a call. I’ll be happy to help you figure out if now is the right time for YOU to buy.

Posted by:  Deborah Byrne