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Create A BlogTIME says Ignore the Headlines! Buy NOW! |
Ignore the Headlines!
Except this one. Sure, housing's in a hole. But there's a potent case for buying now, whether it's real estate or stocks.
TIME Magazine writer Dan Kadlec recently published an article encouraging people to ignore the headlines about the housing industry and buy now.
Some people want to wait and see how prices bottom out, but Kadlec points out that the low interest rates, right now about 5.5 percent for people with good credit, may rise before that bottom is reached.
Any savings you may realize on the sales price of the home will be lost when those interest rates rise.
Kadlec predicts the rise because of the inevitable inflation that comes with any economic recession. With the “R” word in the mix, producers start cutting back. Inventories decline and prices increase as dollars chase fewer goods. Inflation rears its ugly head and the Fed raises interest rates to fight it. It’s a standard pattern.
“It’s time to get serious – before an inevitable rise in interest rates wipes out your advantage,” Kadlec urges.
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1. RE: TIME says Ignore the Headlines! Buy NOW!
Bravo! Why I don't slam the media for the articles on all the "great news" happening nowadays, I do grow a tad weary! I don't remember my friends lamenting the "media" cheerleaders who kept speaking of the latest and greatest new "record" increase in the median home price for the past 7 years! But that being said, the article puts into perspective, very important word nowadays, this real estate market and the screaming deals inherent in any fire sale. Yes, the blood is running in the streets and the prices have not been this good in years. Plus our interest rates are just a couple of ticks away from historic lows.
Being in an area of "tainted pricing!" we have new conforming loan limits but no decent rates to really make them attractive. However, those buying today CAN afford a home! Call your friendly local Realtor and take advantage of this "gift of the shift"!