Why NOW Is A Good Time To Purchase A Home

| December 1, 2011 | 0 Comments

Your Dollar buys you more-Much more!

Miami and Orlando are among the top real estate markets in the country where it is now cheaper to own than to rent a home.

Home prices and mortgage rates have fallen so far the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities, according to the Wall Street Journal’s third Quarter Survey of housing market conditions.

Mortgage rates are hovering around 4%, their lowest in sixty years! The result is a whopping 77% increase in buying power. In 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage.  Today, the same $1,700 gets that homeowner a $350,000 home loan.

Home ownership is also looking more affordable because after several years of declines, apartment rents will rise by around 4% this year according to sources quoted in the Wall Street Journal.  It’s said rents are poised “to pick up even more momentum across the country next year.”  So it may well be a good time to invest in rental property too.

Inventory Drop

Affordability could continue to improve as prices slide even lower in coming months. Price declines are likely because the share of “distressed” sales, including bank-owned foreclosures, tend to rise in the winter, when traditional sales activity cools. Banks are often much quicker to cut prices to unload properties quickly, which means that the greater the share of “distressed” sales, the more prices tend to fall. Another hopeful sign for the market is the drop in inventory. All 28 cities in The Wall Street Journal’s latest survey saw homes listed for sale fall from one year ago. Visible inventory was down sharply in several markets, including by almost half in Miami, and by about 1/3 in both Orlando and Tampa.

Category: Words Of Wisdom

About the Author ()

Mark Olesh, Regional Director - In the last 5 years, Mark has led the South Florida Region to Top 5 finishes in growing his team 3 times (including #3 in 2009, #2 in 2012, and #4 in 2013). In that same time span as Regional Director, total agent commissions have increased by $84 million. The Region has 28 market centers and over 5,000 agents. Mark began as a capping agent in Palm Harbor, became an ALC member and was then recruited into the Team Leader opportunity. There, under his leadership, the office grew from 95 to 210 agents and had sales of over $220 Million. Mark also enjoyed coaching many of the top agents in the market center as well. Mark is passionate about the Keller Williams opportunity and using it to help you build wealth in multiple areas. Contact Mark today for a confidential career consultation. 727-772-5600 x23 Olesh@kw.com

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