With over twenty years’ experience in this industry, I’ve pretty much seen it all. I’ve seen buyer’s markets and seller’s markets. I’ve seen rates way up and rates at all-time lows. I’ve seen home values appreciate out of sight and home values spiral back to earth. Yet throughout every market, buyers have asked:
“Is it a good time to purchase a home?”
There are two ways to answer this question:
The first answer takes into consideration the housing market, economy, and interest rates. And in today’s environment, that answer is easy.
When talking generally, I’m convinced that now is the ideal time to purchase a home. Over the last several years, we’ve seen home values in many areas on Long Island drop substantially to affordable levels we haven’t seen since the 1990’s. Yet interest rates are still very low. This perfect combination won’t last forever. In fact, it probably won’t even last through the end of the year!
I’ve witnessed prospective buyers remain on the sidelines, waiting for the absolute bottom, only to lose the perfect house or be outbid. Even the best stock pickers rarely buy stocks at their absolute lows and sell at their very peak. Buying and selling a home is no different. Market timing rarely works.
But the real elephant in the room is interest rates. The economy is slowly starting to recover, the national deficit is out of control, and inflation is already threatening. It’s an almost certainty that mortgage rates will be higher next year. Even if home prices remain constant, higher rates will make those same houses less affordable.
Today the opportunity for homeownership is the best we’ve seen in over a decade and probably for years to come.
The second answer is specific to your unique situation and lifestyle.
Now that we’ve established it’s a great time to buy, is it truly a great time for you? That answer is not so cut and dry. There are many financial and lifestyle factors to be considered; many more than you might realize!
If you want excellent and unbiased medical advice, you should talk to your trusted family doctor. And if you want excellent and unbiased housing and financial advice, don’t expect to get it from a salesman at a local bank. For excellent advice tailored to your specific needs, make sure you work with a Certified Mortgage Planning Specialist®.
A trusted CMPS® will help you determine whether purchasing a home is the right move for you. Only a qualified and competent and Certified Mortgage Planning Specialist® can ensure your loan will be structured to take advantage of the lowest available interest rates while also ensuring your mortgage accommodates your cash flow needs and financial goals.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.