Why do you feel right now in August 2012 it's the best time to buy a home in the last 25 years?

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August 04 2012 - Northbrook
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Profile picture for JohnWilt

I see 4 reasons and I will keep it simple. 1) the dollar cost per sq ft is nearing one of its lowest points in the last 20+ years. In essence the actual cost to buy is lower  2) the super low interest rates mean you can buy even more home for the same payment you would have been making on a similar house just a few years ago, 3) In many areas we have seen sale prices start to rise and in some instances we are getting multiple offers on homes again.  Not a lot, but its happening and 4) the average cost for renting has gone up about 10% at least in my area.  So, the question for you is, if it cost you less today to own a property than to rent a property and you can lock in a house payment (buying-excluding tax increases) versus paying more and more every year for a rental why would you NOT buy?

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August 05 2012
First you can no go back in time to buy. I wish I could go back and I will wait to buy now. Prices are low and inerest are low.
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August 05 2012
I see a few factors that make this an excellent time to buy in, Phoenix, my market:

-Homes are still selling well below replacement value.  You can buy resale homes, some barely lived in or remodeled like new, for less than you can build one.  This is always a good sign of when to buy.

-Interest rates are so incredibly low, making mortgage payments lower than rents.  It is cheaper to buy than rent!!

-For those investing, mainly due to my last point, properties now will cash flow.  And cash flow significantly, $400+ per month if securing conventional financing.

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August 05 2012
The best reasons to buy now in my opinion are the low interest rate and home prices.

I got an update today offering 2.85% on a 15 year loan.  With rates like that, combined with the extremely low prices we have been seeing in the housing market, people can afford a 15 year and easily as a 30 year loan!

This is especially great news for first time home buyers and I would strongly suggest buying now instead of waiting for prices to go up. 
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August 05 2012
well, I'm not so sure..........this may not be the "best" time to buy......

maybe September, 2012 will be even better!


:)
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August 05 2012
But Debbie, we can't say September is the "best" time to buy until September. ;-)
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August 05 2012
Profile picture for SoCal_Engr
I don't.  ;-)
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August 05 2012
well Cindy - that's why I said "maybe" ( I always like to hedge my bets).......

No one will know it was the "best" time (whatever best means to you).............. until it isn't anymore, and you can use hindsight as your measuring stick!
:)
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August 05 2012
Profile picture for Dunes ..
This is the dumbest thread/Fake discussion in 25 years

Best time to buy in the last 25 years..Real Estate experts LOL
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August 06 2012
Dunes - ya think?
:)

I am reminded of those who stated fervently that last year was the BEST time to buy.....and those who stated the same thing the year before that........oops..........

Frank - I see you're new to Zillow and trying to get some contributions going....that's great......but these blanket generalizations (imo)  don't really stimulate any valuable discussions.............agents jump on the bandwagon and say how low the interest rates are......low inventory, etc etc......and the same things were said over and over in the past few years.............it turns into a cheering squad for home buying.

IMO - the "best" time to buy should be decided by an individual, based on their individual needs, wants and abilities.

If you're decribing "best" as the lowest interest rates.......well......who knows......maybe in 6 months they will be down to 2%........most people didn't think they would drop below 4.............yet, they have.

Anyway - good luck on zillow - hope the premier agent label works out for you!
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August 06 2012
Profile picture for bberris
Nice 'stach Frank.   I am guessing you wrote the review of yourself, too.  But why did you give yourself only 4.5 stars?   Room for improvement?
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August 06 2012
Profile picture for Pasadenan
If I had waited to buy my house until now, it wouldn't be paid off yet, I would have spent more than twice as much money to buy the house, and would have spent 4 times as much money in rent that went to purchasing instead.

I'm baffled how Realtors claim that waiting until now would have been "better".  Perhaps they didn't run the numbers yet?

If my parents waited to buy their homes until now, their property taxes would be a lot more than $1800 per year.  The neighbor is paying $22,380 property tax per year for the same size house and lot.  I'm baffled how Realtors can claim that is "better".  Perhaps they didn't run the numbers yet?

Yes, low interest rates and stable prices mean something.  Of course stable income would mean something too.

It is not a "bad" time to buy, and it certainly is worth doing some checking and running the numbers.  The mortgage interest rates cannot get much lower than they are presently.  But making assumptions on others' economics and social position without having all the data nor doing the math is foolish.  Maybe some are better off moving in to a Baby boomer's house as live-in partial assisted care, security & maintenance, and get paid for their housing arrangements instead?

By the way, since this was posted in "investing", one also needs to be aware that investment mortgage rates are a lot higher than 3-3/8% for 30 yr fixed presently.
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August 06 2012
 
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Related Discussions
Why do you feel right now in August 2012 it's the best time to buy a home in the last 25 years?
Profile picture for Pasadenan
Latest reply by Pasadenan
August 06 2012 | 12 answers
  • Posted by Listing Agent- Frank Kresz
  • In Investing
  • August 04 2012
Mortgage Rates
 
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