Another Reason to Buy?
This post from the Arkansas Realtors Association blog makes some good points, and echoes Ben Roberts’ points. And I agree, it IS a good time to buy, especially if you plan on buying and holding for awhile.
Is it possible your home will lose some value over the next 1-2 years? Sure, even if you buy right. There does not appear to be some magical event coming down the pike to change things around in the broader economy. At this point, I’m unaware of any invention or innovation in its fledgling stages which is going to revitalize our economy, like the Internet was in the early 90s. But it WILL turn around. China and India are still putting loads of people in the middle class every day. Those people desire our standard of living, and the products that comprise that standard, and the economy will hum again as they start to spend those significant savings they have accumulated.
Any downturn in your property here in Arkansas is sure to be short-lived. And Ethan Nobles is right when he reminds a friend thinking about buying:
My question to him was whether he’d prefer to buy a home when there’s downward pressure on prices and mortgage rates or low or if he’d rather wait until both home prices and mortgage rates were on the rise. Frankly, that’s the situation anyone waiting to purchase a home is in right now. Mortgage rates are at historical lows and list prices are declining throughout the state, too. Buyers are certainly in a very good position right now, but a good number of them don’t seem to realize it.
Other good signs for buyers can be found in Ben’s latest post on the market in Northwest Arkansas. Note the $25/ft disparity between list prices and sale prices. It’s bargaining time. The banks are not in the real estate business, and every day a house sits empty the more risk there is that it gets vandalized, damaged, etc. If you ever wanted a house, and have been planning for it the old fashioned way – by saving a down payment, it’s Christmas for you.