Buying A Home In Today's Market
1. Interest rates on long-term, fixed, and adjustable mortgages are at historically low levels. The rate on a 30-year, fixed mortgage is hovering just below 6 percent, while, by comparison, interest rates were hitting 8 percent and higher during the last market downturn in the late 1990s, and were between 10 and 12 percent at the height of the last housing boom in the 1980s. Lower interest rates make it easier to qualify for a loan, and your monthly payments are more affordable.
2. No one can put a price on the intrinsic value of homeownership. Home prices also reflect financial worth and, the good news is, across North Carolina the median sales price for a single-family home has been consistently rising for several decades. The projected median home price for a single-family home in North Carolina in 2008, for example, is $230,000. By comparison, the median price in 2000 was $169,483 which is an increase of 5.23% in a 2-5 year period.
3. The length of time a home remains on the market before it is sold has increased from roughly two weeks in 2004 to between eight and nine weeks in 2007. With more homes on the market for longer periods of time, you have more choices when it comes to selecting a home today.
4. The multiple-offer frenzy that dominated the latest housing boom has subsided, and there is less pressure on today’s home buyers to outbid one another. Not everybody is out there buying homes right now, which makes it easier to take your time and reasearch the property your interested in.
5. The credit industry crisis that has made securing a home loan difficult for many has led to heightened scrutiny of mortgage lenders. As a result, state and federal agencies have created protections for home buyers that were not in place a year ago.
Buying a home in today’s market may be challenging, particularly for those with credit problems or little saved to put toward a down payment. But there are many factors impacting the current housing market that make buying a home today a viable option. If you have any questions or are interested in a property in the Cary area feel free to contact us: