The consistent volatility from the U.S. economy causes concerns for homebuyers across the nation.  However, there have been a few important variables they have stabilized in the real estate market, which would be beneficial for investors or homebuyers to know.  While it is not certain what’s to happen next with our economy, here are some suggestions that may be useful when deciding if it is a good time to buy.

  • According to Zillow’s Real Estate Market Report, price reductions have fell at a slower rate, closing in at 4%, between the first and second quarter of this year.  Closing in at only 0.4%, this decline in price reductions is the smallest change in more than four years.

 

  • At 4%, interest rates are at historically low levels for the near future, which supports more affordable home purchases. 

 

  • According to Trulia’s recent rent vs. Buy Index, buying a home at a median list price was actually cheaper than renting the median two-bedroom apartment unit in 74% of the major U.S. cities.

 

  • With rental prices rising, buying is an appealing and logical option for homebuyers with enough money saved for a down payment.

Looking at the big picture, such as monitoring price reductions and consumer behavior within major cities, helps determine the trickle effect it will have on our local communities.  Regardless, only a local real estate agent will have true understanding of the value of buying a home in your area.  The light looks green, so give us a call at McNaughton Real Estate to help you decide if now is a good time to buy a home in your desired neighborhood.