Real estate has always been and will remain a great option for long term investment. The real estate market is cyclical and is already on the rise from the recent bursting of the housing bubble in most areas. If you’re a first time homebuyer or simply looking for an investment property, now is the perfect time to buy because of the extremely low prices caused by the housing bubble. Prices are predicted to rise in 2013 due to shortages in homes as well as fewer short sales and foreclosures.
Mortgage rates are also at all time lows given the past 50 years. Those with good credit and steady employment are great candidates for stellar rates right now. And as the economy stabilizes, those who may not get great rates now due to self employment or bad credit may find that rates will drop for them as well to something more manageable.
Here’s a chart of home price trends over the last several years:
High unemployment and a generally slow economy will likely keep prices depressed to realistic levels for a while, but once things start to heat up again Las Vegas – which was one of the hardest hit markets across the country – will resume nice price appreciation over the long term.
And a chart of mortgage rates which are at historic lows:
While no one really knows where rates are going, it’s hard to imagine them any lower than they are now. The reality is though that most buyers now are paying cash and not financing, as due to the real estate implosion and financial meltdown banks just aren’t lending as they used to. It’s harder and harder to get a mortgage – perhaps the way it should have been all along!