Now is a Great Time to Buy a House!

With all of the negative news surrounding us these days, from the collapse of the housing market to the latest unemployment figures, many of us assume that now is not the best time to make an investment in real estate. In all actuality, just the opposite is true! Now is the time to buy! And for a variety of reasons.

Reason #1: Pricing is Fantastic! Prices are lowest they have been as New Orleans area housing inventory remains high and home buyers continue to be in the driver's seat. This is true in many markets, and is especially seen in our St. Tammany/Northshore market where there continuues to be a surplus of subdivisions offering builder-developed new home stock. Considering these housing market trends, will prices go lower? Truth is, nobody's crystal ball works well enough to know, but this next statement you can take to the bank: by the time you know that the prices have bottomed out, they will have already risen significantly. In other words, if you wait, you may miss the boat.

Reason #2: Interest Rates Are Low! Can they get much lower than 4.265%? These 4+% interest rates won't last forever. In these uncertain times, the Federal Reserve can change course on a dime, costing you thousands in interest payments on a home loan!

Reason #3: Enjoy Benefits of Home Ownership! All the advantages of home ownership still exist. It is a forced savings plan as you build equity with each payment on the principal. You pay yourself, not someone else. It will more than likely be your biggest savings vehicle. Interest on your home is still tax deductable by the government, so rather than paying taxes, you are building wealth. It is an investment that increases in value even as you build equity while paying down the note and still increases in value (over time) even after the investment has finished being paid for.

This is called a buyer's market for a reason, not a waiter's market or a lookers market. With home prices down, inventory high and interest rates low, now is a great time to buy a house!