Another GREAT post from KCMBlog! Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying: Supply Is Shrinking With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy. Price Increases Are on the Horizon Prices were expected to bounce along the bottom this winter. However, many pricing indices (examples: CoreLogic, FHFA, LPS, Case Shiller) are reporting that prices are continuing to rise. Rents Are Skyrocketing Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported that rents this year have actually shot up by 5.4%. Interest Rates Are Projected to Rise The Mortgage Bankers Association has projected that the 30-year mortgage interest rate will be 4.4% by the end of 2013. That is an increase of approximately one full point over current rates. Buy Low, Sell High We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’. It’s time to buy.

Renting v. Buying... Which Makes More Sense?

There is another great post today on KCMBlog.com that compares the costs of renting to the costs of buying. Several good points are made, among them that rents continue to increase. More importantly, though, is the argument concerning interest rates. Rates, while rising somewhat over the last month, are still historically low... so chances are good that the monthly mortgage payment you are able to negotiate now is the lowest it will be in your lifetime.
Even in markets where rent is cheaper than a mortgage, the future potential of rent increases is far more dramatic than a mortgage increase, which won't happen if you have a fixed rate loan. Specifically, "apartment dwellers could be facing double-digit rent increases in the coming years as a shortage of new multifamily units coupled with a rise in prime renter-age households gives landlords clout they haven’t see since the mid-1990s." With a fixed rate loan, you are much more certain of your future obligations. Why take this gamble?