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
YES!
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.