Buying a house now could be a smart move. According to a recent article in “Smart Money” some advisors are urging their clients to put their money into real estate to avoid the volatility in the stock market. Buying real estate now offers several incentives to investors: low home prices, the fact that mortgage interest rates are at an all-time low. And, the fact that tax payers can still deduct their mortgage interest makes for an even sweeter deal.
The affordability index for our area has continued to rise since 2007. It is up nearly 12%. This index is based on incomes, mortgage rates, and the median price of homes sold. If a buyer has money saved for a down payment, good job stability, and good credit, then buying a home is a “no brainer.”
Even those who have had trouble keeping a good credit rating may still be able to buy with some creative financing. Contact a good Realtor, who understands creative financing. They may be able to get you into a home with little or no down. A word of caution: Creative financing is not for everyone and may even get you into worse trouble. Tread lightly and get additional advice from someone you trust who may not be involved in your real estate transaction.
The housing inventory is declining as more homes are being sold. There are 16% fewer homes on the market in Utah then there were at this time last year. A year ago in the Springville/Mapleton area we had more than a twelve month inventory of homes listed for sale. Currently we have a little more than a nine month inventory. Not all price ranges are selling. The lower priced homes seem to sell faster, as first time home buyers are making their move for home ownership.
Since housing prices in all of the Utah metro areas are expected to rise during the next two years, it makes good economic sense to buy now while prices are still low. If you are interested in learning more about our local market conditions, contact a skilled Realtor who understands our local market, one who specializes in our area. For more information, you may also visit the website utahrealestate.com.
Until next week keep smiling.