Consumer confidence fell to a six- week low as the costliest gasoline in almost three years worsened Americans’ perceptions of their finances. When consumer confidence is low the markets drop and this lowers interest rates. “The Bloomberg Consumer Comfort Index dropped to minus 46.9 in the period to May 8, the worst reading since March, from the prior week’s minus 46.2. March was the last time rates were at their best, so we are heading back for a short period of time. The survey period for the Bloomberg consumer sentiment gauge was the first to take into account May 1 news that the U.S. killed al-Qaeda leader Osama bin Laden. The death of the FBI’s most-wanted terrorist did little to lift sentiment last week, the comfort report showed.”
“The Bloomberg comfort gauge reflected a decrease in one of its three components: the measure of personal finances fell to minus 10.6 last week, the lowest since the first week of February, from minus 6.9 the prior week. A gauge of Americans’ views of the economy, at minus 75, was little changed from minus 75.8 the previous week.” We are going to see lowing interest rates, allowing buyers to buy into that better fitting home for future needs, potential lifers. Take a 30 fixed and make it your last! If you are absolutely going to move and sell your home after a couple of years, then take an interest only loan and put your $ to work elsewhere.
Now is the best time to buy a home! If you plan on moving in three years then it might not make sense, but why would today’s market hinder your decision to buy when you plan to live there for the next 10 – 30 years? How much did you parent pay for their home 30 years ago, a lot LESS than where the market stands today, even less than where the market was at its worst time in 2005 – 2008. So buying now with plans to sit for 10, 20 or 30 + years makes complete sense to do so! There is one thing that is guaranteed in real estate, and that’s the price you pay to get the home. You have the option today to buy long-term in a market that is at its lowest point for today’s generation, it’s now. Homes are as low as we will potentially see them, to match with that we have very low rates.
If my grandfather still had the first home he bought, carried it through all of the market challenges we have faced since 1940’s, he would still be winning even in today’s so called “bad market.” He paid $17,500 for a 3 bed 1.5 bath home at $9.72 / sq ft. Today, in our market that same home would be worth $198.00 / sq ft at 1,800 total sq ft. = est. value of $356,400.00. Still a decent deal!
Remember when everyone was buying at the top of the market because it was the “thing” to be a home owner. People were buying simply because others were. When it was the “thing” to do, market analysts saw this old market as a refinance market, not necessarily a buying market, but a lot of people were buying. Today people are buying for the “real” reasons. We are being offered the best deals on property we have seen in a very long time. Today is clearly a buyer’s market.
Longevity and a great buy-in price is a simple way to win, we also have the plus of really great rates, practically FREE money!