When is the Right Time to Buy

One could argue there is always a better time to buy no matter when the decision is made to buy, but it is safe to say that NOW is still a good time to buy when you consider the following …

• In the last 50 years there has never been a year when the median price of housing has not at least tripled in 30 years(the normal Mortgage term)
• In order to create a tripling of an investment in 30 years an investor would have to find an investment that would grow by at least 5% a year
• In the last 10 years savings accounts and Certificates of Deposit have returned less than 1.5% interest.
• In the last 30 years the average interest rate for mortgages has been slightly over 7% … there have also been years when the interest rates have exceeded 12%
• Current mortgage rates look high only when compared to a couple year period when rates where historically low.

Many economists feel mortgage rates will come back down in 2 or 3 years. With that in mind there are ways to have the seller help the buyer to “buy down” the current rate for a couple years with the plan to refinance in 2 or 3 years.