It's 2009 and still a strong buyer's market. So if you are thinking about purchasing your first home, or upgrading from your current home, you really couldn't have picked a better time. Real estate has always been a great investment and always will be. Up until around 2002 and 2003 houses were selling like gang busters and prices were escalating so fast it was almost unreal. Buyers would see what the seller had paid years earlier and the statement, "I wish I had bought back then" was not uncommon to a realtor's ears. Well, right now is the "back then" for future buyers. Real estate is cyclic and right now we are on the down swing. In Orion Township, for example, the average sales price in 2007 was 6.5% lower than the average sales price in 2003. BUT, the average sales price in 2007 was still more than 6.4% more than it was in 2000 - from $231,289 to $247,146 in 2007. Oxford saw even greater gains over that same time period with an increase of 10.7% in the average sales price. The average sales price in Oxford in 2000 was $216,693 and in 2007 it jumped to $242,553. And 2007 was down from 2006's average price of $266,157. If you figure the house in 2000 was bought with a 10% down payment, that home owner made $25,860 with a $21,669 investment. More than doubling his/her investment while reaping the tax benefits as well as enjoying the pride of home ownership. The above profits were figured with the buyer purchasing in an up market and selling in a down market. Imagine the profits to be made by purchasing in today's down market! So far sales in 2009 are still on the decline and with the amount of foreclosures still expected to hit the market over the next several months, prices will probably continue to decline at least through next year. But that doesn't mean you should wait until next year to purchase that next home. Below are some reasons why you shouldn't put off that home purchase: You don't know when the bottom has hit until it's passed We don't know what will happen with interest rates. Right now interest rates are still low Banks are tightening their criteria all the time to get a mortgage. We don't know what current programs will cease to exist in the future If you're a renter why continue to pay your landlord's mortgage? Every month you pay in rent is just money you're throwing out the window Reap the benefits of home ownership including the tax deductions and the pride of ownership
For more information about purchasing a home or investment property, please don't hesitate to contact Jackie Hawley toll free at my direct line - (800)401-1444 or on my cell phone at (248)736-6407. Or email me anytime at Jackie@JackieHawley.com. |