Next »

How you can Know When you should Buy a House

blog post
Families which have dreamed of becoming homeowners and also have wondered when to purchase a house have found this may be the perfect time. Mortgage companies are providing favorable terms on properties that are undervalued. Buying a house has gotten easier too, with banks seeing a increase in mortgage applications. And, with predictions of market recovery, a house purchased at this time may see a great roi.

purchase a home

Housing prices are more than half what they've been in the final decade. Experts predict a recovery within the real estate market. So when the market bounces back, prices will rise quickly. If there was ever a time to buy a home, this is it. Rates of interest as also low right now too.

Obviously, it all depends on location. The National Association of Realtors are convinced that homes in some regions of the U.S. are depreciating a lot more than in the areas. It is usually time to purchase a house in places like the Miami-Fort Lauderdale area where prices are down about 20 percent, although not so much in places like Buffalo-Niagara Falls in which the prices have raised 10.8 percent.

purchase a home

Some projections state that this trend will continue and home values will continue to fall 'till the end of 2012. Others the market will continue to stay down until 2014. Even with this uncertainty, when you should buy a house also depends on home loan rates, which are not likely to stay this low for very long. In fact, the Mortgage Bankers Association forecasts home loan rates is going to be close to 6 % by the end of 2012. So from the lending standpoint, this may be the perfect time for you to buy.

Additional factors should be considered while you decide when you should purchase a house. Are you planning to stay in the same geographic area for the next 3-5 years so that you can get a good roi if you need to sell? Do you have a secure job? The typical family pays 12% of their monthly income in mortgage payments. And, the downward economy had led to rising rent costs due to a record occupancy rate in apartment complexes. Rental prices are expected to climb 3-4.5% this season. In some areas, rents are greater than monthly mortgage payments. In those cases, it's easier to determine if when to buy a home is now.

Posted Jun 26, 2012 at 5:10am