A lot of people have heard, either on the news or from a friend or colleague, that it’s a good time to buy real estate. I believe that’s true and a client of mine who is a savvy investor realized this over a year and a half ago at a time that most people were still in ‘waiting mode’.
He’s not the only investor that realized this, even Warren Buffett said at the end of February on CNBC “If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”
But why is it a good time?
This article goes over 3 of the main reasons.
If you can pull it off, a house is a smart investment
By John Waggoner, USA TODAY
It’s pretty easy to see both sides of an investment argument. But it’s hard to argue against buying a house now, assuming you can get a loan.
Price is one of the reasons and even though prices are definitely rising and you won’t have the same ability to get sellers to accept a dramatically lower price you are still getting a good value.
The median single-family home price — half higher, half lower — hit its nadir in January, dropping to $154,600, the lowest since October 2001, according to the National Association of Realtors. That’s down from a high of $230,900 in July 2006.
Existing-home prices rose in June to a median $190,100, up 8% from June 2011. Those are still 2003 levels.
There is a lot more information about this in my newsletters and various articles on my sites but this article gives a good, brief summary of reasons why it is currently still a good time to buy real estate so I recommend reading it.