To Buy or Not To Buy A Home?

That is the question that some may ask themselves with the current real estate market.  To buy, you would be taking advantage of some of the lowest rates in history and some deep discounts on a lot of the inventory that is currently available.  Not to buy, you would be waiting to see if home prices are going to go down any further, since I think most know that rates are probably at their bottom.  But the biggest reason people are not buying is the job market and the economy.  I also advise people not to buy if they do not think they are going to live in a home for a while. (Yes I am a real estate broker and I said this!)  So how long is a while?  That depends on your market and how much appreciation the market is giving per year.  If a market is giving 2% appreciation and you need 10% appreciation in order to sell, then you need to live in a home 5 years just to break even, if its 3% appreciation then 3.3 years before you break even.  If the market is a negative appreciation and you have not own it very long, then that is where home owners are upside down today.  Since Jan 1st of 2000 through the begining of the last quarter of 2011, real estate home values have appreciated over 40% in that 11 year span.  So even though we are seeing home prices drop in most areas, over the long term we will see home prices continue to improve.  Those that can afford to buy in todays market will see their home appreciate over the long term and will also have the advantage of locking in fantastic interest rate for a term of up to 30 years.  Those that have the means to buy, should not ponder the question, “to buy or not to buy” and go buy a home, otherwise they will be kicking themselves and asking “why didn’t I buy?”

About EXIT Homevets Realty

Located in the Greater Fort Hood area, the largest military base in the free world. We are experts when it comes to your VA home buying or home selling needs in real estate.
This entry was posted in Exit Homevets Realty, Home Buying, Homestead Exemption, Investment, Killeen, Real Estate and tagged , , . Bookmark the permalink.

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