"Rethinking omeownership"
September 20, 2010
On September 6, 2010, Time Magazine's cover was entitled "Rethinking Homeownership". The article inside the magazine was questioning the long held American dream of owning a place to call your own.
In response to the Time Magazine article, on September 15, Brett Arends, a columnist of the Wall Street Journal published a list of "10 Reasons to Buy a Home". In the posts of this week, I will quote from Mr. Arends' list.
"1. You can get a good deal. ..."We're four to five years into the biggest housing bust in modern history. And prices have come down a long way - about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter in the long haul"
"2. M0rtgages are cheap. You can get a 30-year loan for around 4.3% What's not to like?. These are the lowest rates on record. As recently as two years ago they were about 6.3^. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your life tine. And if we get deflation, and rates fall further, you can refi."
I agree that prices are very favorable in our Inland Empire region. If you want to own a place to call your own, now is the hour. With the low, low mortgage interest rates, 64% of Inland Empire residents could qualify for a mortgage on the median priced house.
For these two reasons alone, this is a great time to buy a house. Tomorrow I will quote two more of Mr. Arends' reason why now is the time to buy a home.
On September 6, 2010, Time Magazine's cover was entitled "Rethinking Homeownership". The article inside the magazine was questioning the long held American dream of owning a place to call your own.
In response to the Time Magazine article, on September 15, Brett Arends, a columnist of the Wall Street Journal published a list of "10 Reasons to Buy a Home". In the posts of this week, I will quote from Mr. Arends' list.
"1. You can get a good deal. ..."We're four to five years into the biggest housing bust in modern history. And prices have come down a long way - about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter in the long haul"
"2. M0rtgages are cheap. You can get a 30-year loan for around 4.3% What's not to like?. These are the lowest rates on record. As recently as two years ago they were about 6.3^. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your life tine. And if we get deflation, and rates fall further, you can refi."
I agree that prices are very favorable in our Inland Empire region. If you want to own a place to call your own, now is the hour. With the low, low mortgage interest rates, 64% of Inland Empire residents could qualify for a mortgage on the median priced house.
For these two reasons alone, this is a great time to buy a house. Tomorrow I will quote two more of Mr. Arends' reason why now is the time to buy a home.
posted by shirley harry at 8:43 AM
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