Frequently Asked Real Estate Questions-Ep. 36

Does it still make sense to buy a home?

In November of 1981 the average interest rate was 15.8%. Rates like that made home loans extremely expensive. Today, the picture is totally different. Interest rates are 4% or lower! The current economy understandably leaves homeowners reluctant to make such a big financial commitment. Some people even suggest that since home values are not appreciating like they once were, the investment no longer makes sense. That is a short-sighted point of view. Here are 5 very sound reasons to buy a home in out current market;

1. Homes are affordable.
2. Home loan rates are at historic lows!
3. Tax break on interest payments.
4. You’ll own it!
5. You’ll build equity.

Low rates combined with affordable home prices is too good to pass up! The next step is to meet with a Realtor and discuss how to get started shopping for that new home. Don’t wait! No one knows how much longer these rates will stay this low. If you or someone you know is considering moving in the next few months, call me!

Frequently Asked Real Estate Questions-Ep. 35

What Are Signs That The Housing Market Is In Recovery?

The average home sale price in the Omaha area increased 4.4% in 2012, making it the highest average sold price since 2007. Renting a house is getting more expensive as well. These two points alone tell you that positive things are happening in real estate. Consumers are ready to move on and have shifted to a recovery mindset.

Last Thursday the Consumer Financial Protection Bureau released its new mortgage guidelines which are “a set of standards that protects consumers from bad loans” according to David Stevens, CEO of the Mortgage Bankers Association. These new guidelines show that the government and banks are working together to ensure a secure environment for mortgage loans. For a great summary of the new guidelines, check out CNN’s article “New Rules Aim to Make Mortgages Safer”.

2012 was a great year for Omaha area real estate. The number of homes sold was the second highest ever, with a 17% increase from 2011.

If you have thought about buying or selling in the past few years, but just did not do it, NOW is the time. Act now before rates and home prices increase. They will both increase as the market continues to recover. Give me a call today and we can chat about how to get started. 402-305-4335.