The latest economic forecasts suggest that the real estate market correction is coming to an end offering consumers a once-in-a-lifetime buying opportunity.
The average 30-year fixed rate mortgage rate remains near 40-year lows. The selection of homes will once again become limited. For prospective buyers, there may never be a better time to buy a home than right now. Taking advantage of the variety of homes available on the market today allows buyers the unique opportunity to find the home of their dreams. Expanded selection combined with low interest rates offer buyers and an opportunity that may never be available again in their lifetime.
Research indicates that home prices will not go any lower. The national picture remains bright. As prices begin to rise again, buyers who do not act now could be making a costly mistake. Real estate remains the best investment. The average home purchased five years ago has appreciated 49%. Even with the recent 2.2% decline in the median home price, this still equates to a more than 45% return on investment for the average homeowner.
Media reports of a vast market decline are deceiving and consumers will benefit from purchasing a home now before prices begin to rise once again. Forbes Magazine (using U.S. Department of Housing and Urban Development statistics), states U.S. real estate prices increased more than 56% from the beginning of 1999 to the end of 2004.
While year-to-year fluctuations are normal, real estate remains once of the best performing and consistent long-term investments. For consumers looking for long-term and stable growth rates, real estate is still their number one choice.
(Information provided by National Association of Realtors)
