Buyer Concerns Q & A

Q: If I buy in today's uncertain economic climate, my home may not appreciate in value. Isn't it better to wait until the economic picture becomes clearer?

A: The fact is the economy is still solid. After expanding rapidly over the past couple of years, economic growth is moderating - and this is actually good for housing. Most economists predict that overall GDP growth will average about 2.5 percent for the rest of the year. That means that job growth will continue to move forward at a pace that should not trigger higher inflation rates or higher interest rates. This period of moderate economic growth, job creation and low inflation, coupled with a true buyer's market where there are plenty of homes to choose from, makes this an ideal time to purchase a new home.

Q: But wouldn't it be better to "play it safe," keep renting and wait to see if prices go down further?

A: The best way to "play it safe" is to actually buy a home. And here's why. Studies show that owning a home is the best way to build household wealth. The sooner a person owns a home, the faster they begin to build up equity and wealth. When you buy a home, you are also purchasing price stability, knowing that you will pay the same monthly payment for the life of your 30-year mortgage.

Now consider the current rental market. During the past few years, many rental units have been converted to condos. As a result, there are fewer apartment rentals on the market. While home prices have been moderating, rents have been going up. Each year, your rent can easily go up a minimum of five percent to ten percent. Where is the economic security in knowing that it is possible your rent could surge 30 percent in three years? You don't receive any tax benefits from paying rent, nor do you accumulate any price appreciation, as you would if you owned a home of your own.

All of the economic fundamentals show that this is a good time to buy a home and that there is upward pressure on rental apartments. The real risk isn't in buying a home; it's sitting on the fence.

...more

Now is the time to "Buy Smart"

A number of factors have converged to make this the best buyers’ market we've seen in years.
✔ Rates are back where they were before the market turned, making mortgage payments affordable.
✔ The wide selection of inventory means buyers have more properties to choose from.
✔ Homeowners in it for the long-term nearly always come out ahead in building wealth.

Courtesy of John L. Scott (current as of January 2008)

“Live in luxury for less..."

Higher quality at a lower price, offered by
well-respected builders, can't help but be
appealing. High-end features like hardwoods,
media centers, and professional landscaping that some buyers could only dream of just a few years ago have become increasingly standard in lower-priced homes.

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Buyer Concerns Q & A

Now is the time to "Buy Smart"

“Live in luxury for less..."

Higher quality at a lower price, offered by well-respected builders, can't help but be appealing. High-end features like hardwoods, media centers, and professional landscaping that some buyers could only dream of just a few years ago have become increasingly standard in lower-priced homes.

Higher quality at a lower price, offered by
well-respected builders, can't help but be
appealing. High-end features like hardwoods,
media centers, and professional landscaping that some buyers could only dream of just a few years ago have become increasingly standard in lower-priced homes.