5 Reasons to be in the Real Estate Market

Sunday, April 14, 2013

5 Reasons to be in the Real Estate Market



Bad public school, not enough room, nightmare of a landlord, sky-high property taxes.   All common complaints, yet people rarely seem to change their position.  Has the poor economy kept you trapped in a house or apartment that you dislike?   Now is your chance to win a clean getaway.  The real estate housing market is finally in a recovery mode, and this year is a perfect time to purchase your dream home – or at least an upgrade from your current living arrangement -- at a relatively reasonable cost.   Don’t sit around thinking about it for too long, prices are only going to pick up.  Still not convinced?  Here are 5 real estate marketing tips why we think 2013 is the year to buy a home.


1. Low Prices

While real estate housing prices are still about 30% lower than they were during their 2006 high, the housing market has turned around, and prices are back on the upturn.  Strike while the iron is hot if you want to snatch up a bargain home while they still exist.  Real estate housing market experts have predicted a 9% rise in real estate house prices this year, up from a 5% forecast late last year.  

2. Record Low Mortgage Rates

Americans don’t seem to agree on much, but you can count on unanimity when it comes to a bad economy – nobody wants that.  However, there is a silver lining to the suffering – low interest rates!  In one attempt to jumpstart the dragging economy, feds have pushed interest rates down to record lows.  This has introduced an unprecedented level of housing affordability.  Lower mortgage rates give you more bang for your buck when it comes to buying a house – homes that used to be out of your price range may suddenly become more viable options.  Mortgage rates are likely to rise again in the next few years, lock, in a fixed rate while they are still low.

3. Rent is going Up

The turbulent real estate housing market has caused an exodus of homeowners – and sent them running straight into the arms of landlords.   As rental vacancies decline,rent is predicted to increase by 7%-10% in the coming years.  Although when you’re in the moment paying monthly rent may seem like less expensive alternative, studies show that, on average,buying is roughly 44% cheaper than renting countrywide.

4. Gain Credit
While many people are under the impression that you cannot become a homeowner with poor credit, that is simply not true.   On the contrary, becoming a homeowner can actually increase your credit score. To accommodate demand, emergence of rent to own home ownership programs have proliferated the landscape: The escalated numbers of credit-starved individuals have compelled the industry to grow considerably in the past half-decade.  Personal finance advocate Elaine Shaknow puts it, “While the process of becoming a homeowner with poor credit will not be as painless and straightforward, yet, it is realistic.  Making your mortgage payments on time is an excellent way to improve your credit.”

5. And Lastly, FREEDOM!

Does your overly friendly landlord keep making unnecessary appearances at your apartment?  Are you tired of hearing every aspect of your duplex neighbour’s tumultuous relationship? If you’re a renter, making the move to owning a home will give you an unprecedented freedom.  Want to decorate your walls hot pink?  Dig a Koi pond?  Pull a George Clooney and get a pet pig?  The possibilities are endless.

Author: Jared Diamond

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