When is a good time to buy can be the question that is keeping you back. The memory of the Great Recession is still quite fresh in the minds of many. With interest rates fluctuating, a buyer can’t help but think that perhaps prices will drop significantly in the near future.
Since the meltdown of the 2000s, lending has become much more rigorous. As a direct result, people who qualify for a loan are far less likely to stop making payments. Additionally, during the recent COVID-related work reduction lenders actively sought solutions to keep borrowers in their homes rather than foreclose on them.
While many of the loans that existed before 2006 are available once again, there is one notable exception. The loan that was the cause of so much pain with so many people losing their home is not being offered. This is yet another reason foreclosures are not rising and will likely not rise in the foreseeable future. Without a steady stream of foreclosures, there is far less downward pressure on prices.
We are seeing some decrease in home price these days. Here, too, there is a notable difference. The downward trend is driven by sellers who intentionally over-priced their home expecting that people will pay any price just to get a home. This is no longer the case so seller are now having to re-adjust their prices or take the home of the market.
Today we are seeing investors band together to buy houses to then rent them out for a steady stream of cash. Have you noticed how quickly rent are rising now? You can choose to be at the mercy of your landlord or you can permanently set the monthly price of your housing by getting a 30 year fixed rate loan.
So stop asking yourself is it a good time to buy. It’s time to start benefitting from one of the few remaining tax breaks for the average person. Get a home with a mortgage and deduct the interest you pay on your tax returns. You’ll save big on your tax returns and dance all the way to the bank (you can laugh, too!).