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How you can Know When you should Buy a House
Families that have dreamed of becoming homeowners and also have wondered when to purchase a house have found that this could be the perfect time. Mortgage companies are offering favorable terms on properties which are undervalued. Buying a house has gotten easier too, with banks visiting a rise in mortgage applications. And, with predictions of market recovery, a house purchased at this time could see an excellent return on investment.
Housing prices are over fifty percent what they've been in the last decade. Experts predict a recovery in the housing market. So when the marketplace bounces back, prices will rise quickly. If there is ever a period to buy a home, this is it. Rates of interest as also low right now as well.
Of course, everything depends upon location. The nation's Association of Realtors report that homes in certain regions of the U.S. are depreciating a lot more than in other areas. It is usually time for you to buy a house in places like the Miami-Fort Lauderdale area where prices are down about 20 percent, although not so much in places like Buffalo-Niagara Falls where the prices have raised 10.8 percent.
Some projections state that this trend will continue and home values continues to fall 'till the end of 2012. Others the market continues to remain down until 2014. Despite this uncertainty, when you should purchase a house also depends on home loan rates, which are not likely to stay this low for too long. Actually, the Mortgage Bankers Association forecasts mortgage rates will be near to 6 percent towards the end of 2012. So from a lending standpoint, this may be the perfect time for you to buy.
Other factors should be considered while you decide when to purchase a house. Do you plan in which to stay exactly the same geographic area for the next 3-5 years to be able to obtain a good return on your investment if you need to sell? Have you got a secure job? The average family pays 12% of the monthly income in mortgage payments. And, the downward economy had resulted in rising rent costs as a result of record occupancy rate in apartment complexes. Rental prices are required to climb 3-4.5% this season. In certain parts of the country, rents are greater than monthly mortgage payments. In those cases, it's easier to know if when to buy a house is now.
