Why is now the best time to buy a home? Good question. And I have a good answer:
It’s a buyer’s market! But what does that mean?
Prices are incredibly low.
Five years ago, Ivory’s average home price was $415,876. This past year our average home price was $289,000. See the huge difference? Prices are awesome. But they can’t stay this low forever. The market could change any time, and when it’s at the bottom, there’s only one way for it to go—which is up! That means higher prices and interest rates. It’s only a matter of time. If you don’t take advantage of the amazing prices being offered right now, you’ll be kicking yourself for missing this extremely rare opportunity.
Selection is fantastic.
This type of market typically produces a great supply of homes and communities to choose from, which is good for you! For example, Ivory Homes has over 50 locations and hundreds of “Quick Move-in” homes that are for sale right now. Take your pick from the available homes in a neighborhood of your choice, or select a beautiful home design for Ivory to build on a particular lot. But even if supply is high, that doesn’t mean your favorite home site will be available forever. Someone else could snatch it up any day, so right now is the best time to make your move.
Interest rates are setting unbelievable records.
This is the very best reason of all to buy now. Have you heard how low they are? Home buyers are getting interest rates at 3.5% and lower! About 30 years ago people were paying 14% and higher on their mortgages! That is crazy. Back then, if your parents had bought a home for $250,000 with a 30-year FHA loan and that high of a rate, their payment would have been about $3300 per month! Wow. That is well over twice the amount they’d pay each month with the rates that are available to you now, and a difference of more than half a million dollars over the life of the loan! But hopefully rates won’t jump that high that quickly. Let’s say they only increase 1% in the next year, which is not only possible, it’s probable. That increases your monthly payment by $140, and adds up to $1680 per year. By missing a 3.5% interest rate, over 30 years you’d pay more than $50,000 extra! Convincing? Hopefully so, because your interest rate will truly make the biggest difference for you financially.
Steve Burgoyne, President of Ivory Mortgage, told me this: “Rates are the lowest they have ever been. What most people fail to realize is that low rates are the product of a slow or weak economy. Once the economy starts to gather momentum, home prices and rates will rise fairly quickly. No one knows how soon that will happen, but it is clear that it will happen.” Overcome your trepidation and take that step into a beautiful new home while opportunity is still knocking at your door!