Is this still a good time to buy a home?
Yes as a long-term investment.
1. Over the past year, home owners gained an average of $56,700 in equity.
2. Median rent has gone up consistently since 1988.
3. Home ownership offers tax deductions and protection against inflation.
4. Low inventory protects home value, which is very different from 2008 when inventory was high.
5. The average renters give 31% of their income to landlords.
6. Today’s market has much lower foreclosure rates.
7. The lending environment today is much stricter than 2008 with many more financial mechanisms to combat a housing bubble. The industry has learned from history.
8. Buyers can take advantage of the lower competition in today’s market when internet rates are higher, get a good deal on price, and refinance into a lower rate when the rates go down. This is the least competitive time I’ve ever seen in the past decade for buyers in the Greater Boston area.