Compelling Reasons to Buy Real Estate Sooner Than Later
Based on recent trends and expert opinions, postponing the purchase of real estate is likely to work against people thinking about buying a home. Consider the following:
- Price Appreciation – Prices were up 7% this April when compared to last April. A home buyer now has to pay $7,000 more for every $100,000 in purchase price. After a 14% gain nationally in 2013, and a 9% gain nationally in 2012, prices are expected to continue to rise, according to the National Association of Realtors.
- Foreclosures – There are fewer foreclosures impacting prices. Foreclosures are down 34% from last March, and are at their lowest level since mid-2007, according to the U.S. Department of Treasury.
- Demand (Pending Home Sales) – Index increased 3.4% in March, over February’s numbers, according to the National Association of Realtors.
- Closings – Residential sales in March were up 8% when compared to last March, according to RealtyTrac.
- Availability – March’s National Housing Trend Data from Realtor.com suggests there will be more homes on the market this buying season, giving buyers more of a selection to choose from. The number of properties available in March rose 9.5% when compared to last March.
- What the Experts Say:
Mark Zandi, Chief Economist, Moody’s Analytics: “We’re expecting to continue to have a better housing market as the year progresses.”
James Paulsen, Chief Investment Strategist, Wells Capital Management: “We have record household income, confidence is at 5 year highs, and home-buyer affordability is near all-time record highs. The harsh winter weather is now gone.”
Janet Yellen, Federal Reserve Chairman: Yellen said she sees proof that a spring bounce in economic output is upon us.
We may still be in the early stages of a healthy recovery in real estate. With the nationwide home-buying season now if full-swing, buyers are encouraged to remember that: “The early bird gets the worm”.