Is This a Good Time to Buy? by Lisa Getson
Lately, there has been a lot of hype in the media about the real estate market being in a slump. I have heard people on television say that this is not the right time to invest in a home. However, I strongly disagree.
For starters, real estate is highly localized. While the market may not be doing so well in other parts of the country it is still fine here. Making a broad statement that real estate is poor all over is like saying it is raining outside everywhere. There are and there always will be areas of the city that are established and hold their value. Likewise, there are similar areas in the Main Line and Philadelphias other suburban communities. This makes purchasing a home a good investment, not a bad one. Even if your profit is minimal in the end, buying in the right location will still enable you to live for free during the time of your residence. I can't think of a better investment.
Moreover, homes that are in good condition, priced right and located in a desirable area are selling. As a matter of fact, some of these homes are selling for close to, at, or above asking price. Some are even selling following multiple offers. Sellers who have invested money to modernize their homes are still seeing a generous return, especially those whose homes are in a popular location.
Nobody disputes the fact that interest rates are still extremely low. Years ago when interest rates were 16%, 18% or 20% people still bought homes. Today, with interest rates in the low 6% range it makes home buying even easier. Furthermore, there are various types of mortgage packages available, especially for first time homebuyers.
Finally, this is a great market for buyers. With the percentage of listings on the rise, buyers have a large selection to choose from when searching for a home. Moreover, when a home sits longer on the market, buyers may be able to negotiate the price.
If you are considering purchasing a home, now is the best time! To think that the price of homes in this area will decline significantly may be a grave error.
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