First-time Buyers Can't Afford to Sit Out Today's Market
MORRIS PLAINS, N.J. - The current housing market continues to present one of the most affordable times to buy in recent history. However, some would-be buyers remain apprehensive. But as recent trends suggest, those who want to take advantage of these ideal buying conditions need to act quickly or they may miss out on a golden opportunity.
“It is improbable that first-time buyers will see another market featuring today’s opportunities,” said Jim Weichert, president and founder of Weichert, Realtors. “Those who sit out today’s market are likely to regret their decision once the conditions change.”
Recent reports have suggested home prices and interest rates will rise over the next few years. Freddie Mac recently reported that the average 30-year fixed rate mortgage rate rose again for the second time in several weeks while the Mortgage Bankers Association forecast interest rates to rise to 5.70 percent by 2012. Therefore, it is unlikely that borrowing money to purchase a home will be more affordable in the near future than it is today.
Current home prices are also contributing favorably for buyers. As a result of the market correction experienced the past few years, home prices have receded to their lowest level in years. However, home prices have begun to stabilize and are even on the rise in some markets. While home price stabilization is good news for buyers in terms of a likely return on their investment, it should also signal some urgency for those who want to get the best price possible.
With many economists predicting slow but steady home price appreciation over the next few years and with interest rates likely to rise as well, it would appear first-time buyers can’t afford to sit the current market out.
Weichert has nearly 18,000 sales associates in over 500 company-owned and franchised sales offices in key markets throughout the U.S. A family of full-service real estate and financial services companies, Weichert helps customers buy and sell both residential and commercial real estate, and streamlines the delivery of mortgages and home and title insurance. For more information, call Weichert’s customer service center at 1-800-USA-SOLD or visit Weichert’s Web site, www.weichert.com. Each Weichert franchised office is independently owned and operated.