According to CNN Money, buying a home may never get any cheaper than right now. The current conditions creating this – interest rates and housing prices – have come together to create the perfect buying storm.
It’s a great time to be a first-time buyer, a buyer-up or an investment buyer. A number of past clients are buying rentals, many first-timers are moving into their first homes and quite a few of our clients decided to turn their current owner-occupied homes into rental properties and are more than covering their mortgages with what they’re getting in rents. This has allowed them to purchase their second homes while the money was cheap and house prices low plus add a rental property to their housing portfolio.
As busy Portland Realtors we have first-hand knowledge of this on a daily basis but it’s always nice to have CNN back us up!
1) HOUSE PRICES ARE SET TO RISE: Since 2006 the national average home price has dropped 34% according to CNN Money. In the Portland market, housing prices have dropped consistently 7.6% per year in the close-in neighborhoods. However, as job growth continues, foreclosures decline and loans are easier to get (yes, it’s true, lending regulations are starting to ease up), home prices are slowly yet surely set to rise.
2) MORTGAGE RATES AT 45 YEAR LOWS: CNN Money reports that mortgage rates haven’t been this low since World War II. The average 30-year fixed-rate mortgage dropped to 4.5% in July of 2011 and stayed there until a few weeks ago when rates reached 3.84% according to CNN. Buyers at Urban Nest have received even lower rates thanks to the amazing work of our in-house lender David Bunker at Director’s Mortgage. Just like home prices, the increased demand in loans coupled with the recovering economy will start to push interest rates up. If you want the great rate, now is the time to grab it!
If you or someone you know is thinking of buying a place, give us a call or drop us a line. We can run a variety of scenarios and answer any questions you may have!!
Your Team at Urban Nest