Now is PRIME TIME to buy real estate! Why??

1. Homes have never been more affordable. In all the statistics that are being posted, the one going most unnoticed is that homes have never been more affordable. Affordability is measured by the median mortgage payment on the current median priced home as a percentage of the median household income. Confusing? The chart below shows the averages over the last 10 years.

2. Mortgage rates are at rock bottom and won’t stay there forever. The National Average on fixed rates dropped to 4.36 in August of 2010. Interest rates for the same time last year averaged 5.19 percent, which equals a $90 difference in mortgage payment on a $200,000 mortgage with 10% down.

3. Prices are trending back up. Home prices have seen a major decline in the past 30 months, but all signs are pointing towards a recovery. We may still be in for a little bit of a roller coaster of a ride, but now is not the time to stay on the fence and wait.

4. Sellers are Motivated. When supply exceeds demand, buyers have the upper hand. There is over a 12 month supply of inventory available in some areas, including our new mainstream of distressed homes. Buyers have lots of choices, and sellers that are motivated are willing to make deals.

5.  Lenders are back in the game. Gone are the days of “no doc” loans, but if you have a job and can afford the payment, there is probably a loan for you.

6. Ownership costs are dropping below rental costs. The recent downturn in the housing market has resulted in a drop in rental rates, but rents are back on the rise, while the cost of home ownership has dropped.

7. Home Ownership remains the core of the American Dream. The majority of American still aspire to own a home, and for good reason. Home ownership is critical to financial stability and wealth building. A home serves as a forced savings account and provides a solid asset, as well as a place to live.

The recent decline in home sales is perfectly predictable. Just like all things money related, there must be a a rise and fall in prices.

So, a smart buyer knows that this is the time to buy! Get into the housing market before it heats back up!