It’s my belief that now is a great time to buy a home. It has nothing to do with the fact that I am a Realtor®. It has everything to do with today’s financial status.
Experts are in agreement. Donald Trump (who’s considering a Presidential run, by the way) said:
“I can’t guarantee it, but I’m pretty sure this is right now a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to that interview with Donald Trump,’ ”
Louisville Homes Blog quoted real estate investor, John Paulson, back in September saying:
“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.” [link]
Real Estate Market Forces
So if you don’t want to make a decision based on an expert’s opinions, what if I told you the market conditions are also telling buyers that it’s a smart time to buy?
When I wrote, “Honestly, is it a good time to buy Louisville real estate?” interest rates were at historical lows, inventory was close to record highs and home prices had dropped 2.5% in two years. Since then, interest rates have been inching up, inventory has remained roughly the same and home prices have dropped just a bit. All three indicators are still very favorable for buyers.
KCM Blog, one of my favorite real estate blogs in the country, wrote a piece yesterday that covers three other important market conditions: 1) economy, 2) unemployment, and 3) real estate’s performance as an investment.
Economic Indicators Show Real Estate Is a Good Investment
I won’t copy their charts and quotes to paste them here but you should read their short post. To sum up:
- Economy is improving
- Unemployment, which had been increasing, has leveled off
- As an investment, real estate tops Dow, S&P, and Nasdaq over the past 10 years
So if you’re waiting for something to change before you buy your next home, what would that be?