Families that have dreamed of becoming homeowners and have wondered when to buy a house are finding that this may be the perfect time. Mortgage companies are offering favorable terms on properties that are undervalued. How to buy a house has gotten easier too, with banks seeing a rise in mortgage applications. And, with predictions of market recovery, a home purchased right now may see a great return on investment.
Housing prices are more than half what they have been in the last decade. Experts predict a recovery in the real estate market. And when the market bounces back, prices will rise quickly. If there was ever a time to buy a house, this would be it. Interest rates as also low right now as well.
Of course, it all depends on location. The National Association of Realtors report that homes in some areas of the U.S. are depreciating much more than in other areas. It is probably time to buy a house in places like the Miami-Fort Lauderdale area where prices are down about 20 percent, but not so much in places like Buffalo-Niagara Falls where the prices have increased 10.8 percent.
Some projections say that this trend will continue and home prices will continue to fall until the end of 2012. Others say the market will continue to remain down until 2014. Even with this uncertainty, when to buy a house also depends on mortgage rates, which are not expected to stay this low for very long. In fact, the Mortgage Bankers Association forecasts mortgage rates will be close to 6 percent by the end of 2012. So from a lending standpoint, this may be the optimal time to buy.
Other factors should be considered as you decide when to buy a house. Do you plan to stay in the same geographic area for the next 3-5 years so that you can get a good return on your investment if you need to sell? Do you have a secure job? The average family pays 12% of their monthly income in mortgage payments. And, the downward economy had led to rising rent costs due to a record occupancy rate in apartment complexes. Rental prices are expected to climb 3-4.5% this year. In some parts of the country, rents are higher than monthly mortgage payments. In those cases, it's easier to know if when to buy a house is now.
Housing prices are more than half what they have been in the last decade. Experts predict a recovery in the real estate market. And when the market bounces back, prices will rise quickly. If there was ever a time to buy a house, this would be it. Interest rates as also low right now as well.
Of course, it all depends on location. The National Association of Realtors report that homes in some areas of the U.S. are depreciating much more than in other areas. It is probably time to buy a house in places like the Miami-Fort Lauderdale area where prices are down about 20 percent, but not so much in places like Buffalo-Niagara Falls where the prices have increased 10.8 percent.
Some projections say that this trend will continue and home prices will continue to fall until the end of 2012. Others say the market will continue to remain down until 2014. Even with this uncertainty, when to buy a house also depends on mortgage rates, which are not expected to stay this low for very long. In fact, the Mortgage Bankers Association forecasts mortgage rates will be close to 6 percent by the end of 2012. So from a lending standpoint, this may be the optimal time to buy.
Other factors should be considered as you decide when to buy a house. Do you plan to stay in the same geographic area for the next 3-5 years so that you can get a good return on your investment if you need to sell? Do you have a secure job? The average family pays 12% of their monthly income in mortgage payments. And, the downward economy had led to rising rent costs due to a record occupancy rate in apartment complexes. Rental prices are expected to climb 3-4.5% this year. In some parts of the country, rents are higher than monthly mortgage payments. In those cases, it's easier to know if when to buy a house is now.
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