2012 Potential Home Buyers Alert- Is Now The Time To Purchase a New Home?

By: Don Hannig

Based on a recent Wall Street Journal Survey, owning a home is now more affordable than at any time over the past fifteen years. Sagging prices and interest rates below the 4 percent range on a 30-year fixed mortgage are the largest drivers behind this record trend of housing affordability. But down markets, rising inflation, and the perception of an uncertain economic future in this country has left many potential homebuyers a bit uneasy about taking the ultimate plunge.

So where do YOU weigh in on new home ownership – are you still perhaps a bit hesitant? Ironically, the reluctance for many people to buy a home in this economic climate is what makes it a relatively good time to purchase. Those low mortgage interest rates alone may sway many qualified borrowers to consider buying a home – and banks are avidly looking for sound candidates. Couple these fantastic rates with low prices from dropping values and foreclosures, and you have yourself a buyer’s market!

Four Factors Why It’s a Poconos Buyers Market NOW

1. Mortgage rates. Current interest rates alone make buying a quality home a sound financial decision, as some rates are at a near 60-year low. From an investment standpoint – if you had to make a choice between buying your first home OR investing in the stock market, which option do you feel would be the better bet? In a recent CNBC news interview with Warren Buffet, when posed with the very same question, the businessman/tycoon said he would buy the home. “If I knew where I wanted to live the next five or ten years, I would buy a home (with that money) and I would finance it with a 30-year mortgage. It’s a terrific deal,” said Buffet emphatically.

2. Rental Prices Are Up. According to a rental index by Zillow, an online home and real estate marketplace, median rents rose 3 percent nationally from January 2011 to January 2012. At the same time, the number of renters has increased due to the economic and employment challenges of the past several years. People are simply scared to buy, or may not have the credit or adequate down payment to do so.

3. Freedom of Choice. If you just take a short drive, the bevy of “for sale” signs is nearly shocking. Home buyers have the ultimate luxury of choosing the type of home they wish to buy, in the community they are most happy with, at a price they can afford. New construction companies really WANT your business, and are willing to prove it through quality service and construction.

4. The Pocono Mountain Region Rocks. It’s way more than just a place to live. Over the long haul, homeownership in the Pocono Mountain regions offers numerous advantages that simply can’t be attained through renting. From putting down roots in a community and creating memories, to the ability to make whatever home improvement choices you’d like, homeownership certainly has its benefits. You can check out the Best Reasons To Live In the Pocono Mountains blog series for hundreds of reasons why the area is a fantastic place to settle for the long haul.

Do remember that all these economic factors will not automatically mean that home ownership is the right thing for you personally. If you are going to be in the area for at least 5 years and can afford all the costs of home ownership, including insurances and real estate taxes, then now is a very good time for you to buy. If your situation is more uncertain or you don’t want all the responsibilities of long-term ownership, renting still may be the right option for you.

Also know that a down market won’t last forever. Real estate broker Don Ricedorff believes that the home market is beginning to improve with the growing influence of the “millennial” generation, also known as “Generation Y.” Generation Y is considered those between the ages of 18 and 35 and it currently makes up 34 percent of the workforce. It is projected that in five years, “millennials” will make up 65 percent of the U.S. workforce, according to 2010 U.S. Census.

“They will all need a primary home to live in,” Ricedorff said. “This is the best time to lock in a low rate and a low cost of living. Rents are likely to only increase.”

So what does this information mean to you and your family? Is it YOUR time to buy?

To find out more about the benefits of energy efficiency and green building please call Keswick Point, the region’s newest PRD, at 570-646-4646, email us at info@keswickpointe.com or visit our website at keswickpointe.com.

 

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