A Great Period to Buy a House?

Not only could this be a good time to by a house, but it may be the best time in years. For some reason, home buyers seem most interested when prices are high. But just as we all like to see a “20% off” sale on our favorite consumer items or groceries, we should be more interested in buying a house when they are selling cheap. That’s right now.

Of course, if you have a home you may want to hesitate to move up to a larger one. Given the number of people in over their heads on their mortgages, it might make sense to be cautious. But if you are hesitating because you don’t want to sell your current home at these lower prices, think again.

Let’s suppose you have a home that you owe $90,000 on, which was worth $180,000 just two years ago. Maybe values have dropped by 20% in your area of the country since then, so it’s now worth $144,000. It might seem that this is a terrible time to sell. On the other hand, if you had plans to move into a larger home at some point, this may be the best time.

Now, if you have the financial ability, you might want to purchase the new home without selling your existing house. You can rent out your current property and wait for until you can get more for it. But if you need to sell to buy, now is the time.

It’s been a long time since there has been such a steep decline in the prices of homes. It’s what every other industry would call a sale, but we call it a correction in the real estate industry. Of course there is no guarantee that we have reached the bottom on prices, but at the very least you know you are paying less than you would have a couple years ago, which is always a good thing.

What if this is your first home purchase? Well, it still makes sense to purchase something when it’s on sale. Interest rates are still really low and it’s tougher to get financing now. You can feel better knowing that banks and other lenders are not allowing borrowers to get mortgages they can’t afford.

Houses on sale, interest rates still near at an all-time low, and banks no longer pushing mortgages that you can’t pay for – this may be the best time to buy a house.

For more information on purchasing and Selling your next property Visit:Royal Lepage ProAlliance or Lorne Park Real Estate