For some perspective on the all-important US real estate market, and to help you see if now is a good time to buy a home, I invite you to look at the chart below that illustrates the inflation-adjusted median price of a single-family home in the United States over the past 45 years. Here are a few points of interest:
• Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices went up increased also.
• All those gains and then some were given back during the following 6½ years from 2006 to 2012.
• Over the past three years, however, the median price of a single-family home has trended significantly higher. More recently, the inflation-adjusted price of the median single-family home (as shown best by the green line) is now pushing beyond its post-financial-crisis highs.
IS NOW A GOOD TIME TO BUY A HOME? Does the real estate rally continue?
Courtesy of Chart of the Day: htttp://www.chartoftheday.com
As land becomes scarce, as rents rise, as mortgage rates rise and as more people buy primary and rental homes to live in and as investments, housing in highly-sought-after areas will become more in demand. So, houses will continue to rise in value. Although becoming approved for a home loan from a lender isn’t always easy, the Mortgage Fee Coach can often help you find a willing, reputable lender. The sooner you buy a home and take advantage of inexpensive costs to borrow money (low interest rates and fees), the sooner your leverage (the use of a small initial investment, credit or borrowed funds to gain a very high return in relation to one’s investment) will work in your favor.
My advice: buy a home ASAP.
Additional note from Dan Stone: I suggest registering with Chart of the Day. It is free and they provide very helpful information about many topics, including: stocks, bonds real estate, commodities and a lot more.