Is Now A Good Time To Buy A House?

Have you been asking yourself, “Is now a good time to buy a house?” The short answer is YES! But, WHY you might ask? …there has truly never been a better time to buy a house. Not only are home prices at incredible lows but combined with low mortgage interest rates home affordability is still at an incredible high even if slightly off it’s record peak of a few months ago.

The Beacon Economics Home Affordability Index answered the question, “Is now a good time to buy a house.” They showed in last October that this combination of low interest rates and home prices, as well as the economy places home affordability at the best it has been at least since 1969 when data on these factors first began to be recorded. This report showed the home affordability index at just 16.1% meaning that the average household only needs 16.1% of it’s monthly income to afford the average home. This is even significantly lower than the FHA’s conservative guidelines of 29%. Contrast this with the early 2000s when lenders where allowing home buyers to take out loans requiring up to 50 or even 60% of their monthly income to cover their housing payments.

While interest rates have inched up a little in the last couple of months and home prices in some areas are already seeing good growth rates now is still an incredible time to buy a home. Buyers can now get two or three times the home for their money than they could just a few years ago and can also enjoy paying off homes faster than ever with easily manageable payments on long term fixed rate mortgage loans.

Also why it is now a good time to buy a house is because those buying now are not only making an incredible investment for their future and for their children, but also stand to see huge profits from their smart buying moves. It is true that is may still take a few years for home prices to rise to their previous lofty high yet there are few other investments that most can make that can yield two or three hundred thousand dollars in return on a hundred thousand dollar investment which is financed and only requires a few thousand out of pocket.

In addition to the growing equity, another reason why it is now a good time to buy a house is because those who are buying real estate as investments are realizing much higher profit margins and levels of cash flow than in anyone has seen decades. They are easily pulling in double the rental profits each month than from 5 years ago if not much more.

The bottom line is that the window is shorter than most think and most of us will never see opportunities like this again in our lives. So, is now a good time to buy a house? …as if we haven’t answered that question enough already: ABSOLUTELY!

If you have been asking yourself is now a good time to buy a home in San Diego County, and you’re ready to start looking, let SDCHB help! Click HERE and find out how easy it can be to find the home of your dreams!