Is there a sense of urgency I am ignoring in the market? Should I continue to wait and see? As someone in the market considering real estate, these might be questions or thoughts you have. If you ask me, NOW is a great time to buy! Of course, I’m an agent, what else would I say? But really, I can back it up!
Consider the interest rates alone and see if they are not enough of a motivator. Currently, mortgages have never been lower. Interest rates are at 4% or lower for 30 year fixed loans and if you venture into the 15 year mortgage, your rate would be 3.5% or lower! That means for a conventional 30 year fixed loan, the money for Principle and Interest will cost you $477/$100,000 borrowed. That drops to $449 for a rate of 3.5%! How long will these rates be around? No one really knows for sure but they won’t stay around forever.
For me, anything below 7% is a phenomenal rate! I bought my first home in 1994 at 9% and was ecstatic when I refinanced at 7%. I recently purchased at 5% and am thinking I need to refinance!
Consider if rates were to go back up to 7%, that same $100,000 would cost $665/month. Almost $200 per month more! Today’s rates create an annual savings of $2,256 annually per $100,000 borrowed. That’s not chump change!
Even though real estate is still shaky in some parts of the country, Park City and has seen some great movement in the right direction. Getting into something you can afford, and will hold its value has always been sound advice. Additionally, real property is a great hedge against poor performing stocks and inflation. The right investment is sure to appreciate over time. One last thing to consider, if you wait too long and interest rates go up, you might be priced out of the market.