Benefits of Buying in a Cooling Market
Residential Real Estate, once a shining star of the national economy that seemed unstoppable, has had a rocky few years.
Nationally, home price appreciation is slowing down from the rapid pace experienced by many markets over the past few years. Mortgage interest rates are on their way up. Is this any time to be thinking about investing in a home? Of course it is—if you’re buying it for a place to live, not as a speculative investment, and can afford to take the leap.
Owning a home is still financially not a bad deal, as long as you have the income to support the cost of homeownership. You better figure on living there a couple years to make any kind of profit.
- Investors who hope to profit quickly on home sales, known as property flippers, for the most part have come and gone from the market.
- People now are buying for the “right reasons”. Sellers no longer hold all the cards, which is creating a more balanced market.
- In a growing number of local markets, buyers have more time to think about a home before they make a decision on whether to purchase it. Last year, that often wasn’t a likely luxury.
- Current conditions in many markets also afford consumers a better opportunity to negotiate.
If you’re in it for the long haul that is, buying a home with the intention to live in it for years a home is still a decent investment. The downside of real estate is better than the downside on just about anything else!