BUYERS ARE SITTING ON THE FENCE!
They should be buying, now and not waiting. The economy can change significantly and suddenly, and all options change.
- Prices are lower than they have been in five years. In some instances, the prices have rolled back to 2002.
- Interest rates are low and banks are ready to make new mortgages
- Renting does not add stability or hedge against future inflation
Now, let me digress. Owning is still filled with advantages which people seem to forget. Investing in the purchase of a home allows the owner to have tax advantages from the interest paid on the mortgage. The low prices of homes today, will increase with time and there will be value in owning an appreciating asset. Creating your own environment, decorating with your own taste and enjoying the privacy of your own home are invaluable.
Historically, real estate is cyclical. Over time, it is still a wonderful investment. Bubbles like we had in 2005 is in the past and the new starting point is now. Prices have reset, we all have the chance to start over.
Americans who have amassed the greatest wealth have always invested in real estate and kept their properties over a long period. This is a fact that is true today, as well.
The American Dream was not wrong. It is still good to own property.