Sometimes its hard to see past the naysayers’ headlines and view a situation for what it is. Locally this can even harder since you don’t have as many trusted sources reporting on this issue. And those that due tend to be more concerned about selling papers with sensational headlines that play off the fears of the public than actually report on both the positive and negative (cough! Idaho Statesman cough!).
With that in mind, I wanted to “report” on why I think, overall, now is a good time to buy if you are in a position to do so.
- Median Home prices are as low as they have been in 10 years here in Boise.
Obviously this is a positive. The median home price in Ada County in April 2011 was $135,000. We haven’t seen that same Median price since 2001 here. Now, the flip side to this coin is home prices are still trending down. We don’t know when we’ll hit the bottom either. This sort of uncertainty is scary for anyone, but especially for the person borrowing a six figure sum of money from the bank. (Just being honest here, right?) But there’s much more to the story…
- Median Income Levels are higher than they were 10 years ago here in Boise.
In other words, home prices are comparatively the same price, but now you have to spend a smaller percentage of that income (pre-taxed income mind you) to buy that same home. This is good. And there’s no flip side to the coin here either.
- Mortgage Rates are at Historic 30+ Year Lows.
So not only are home prices low and you have more money to use to pay for it, but the money you need to borrow is as cheap as its ever been. You’ll save thousands of dollars with these rates compared to interest going up just 1 percentage point. Its crazy.
Obviously the “news” people are in the business of selling ads and they can only do that by getting eye balls on their product. But don’t let these sensational, fear driven headlines keep you from looking at the situation as it is. I stand by my assertion, now is a good time to buy… but if you don’t believe me, have a look at this Wall Street Journal article, Why Its Time to Buy. 😉
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