If Walmart were having a 40 to 60% off Sale the line in Cedar City would stretch at least to Enoch! For those who aren’t familiar with Cedar City that is approximately 7 or 8 miles. I will be honest, comparing the Real Estate Market to a store really isn’t a good comparison, I would say a better comparison is comparing it to buying a car. The reason that I say that is because a car purchase like a home purchase often involves a loan of some sort. Many markets across the country are seeing prices at least 40% off their market high, I would dare say that at many price points, the market in Cedar City is there as well.
How would you like to own a Lexus for the price of a Toyota, an Acura for the price of a Honda or a Cadillac for the price of a Chevrolet? That is what we’re talking about, prices reduced by levels many will never see again in their lifetimes. How about owning a Rolls Royce for what you would pay for a Mercedes? These are the price reductions we’re talking about. Home prices combined with historically low interest rates make this the best time we may ever see to buy a home.
It isn’t just me who is saying that it is a great time to buy a home, Donald Trump, America’s favorite boss is saying it, so are the Wall Street Journal and Business Weekly and many other publication. Many of you are saying that prices haven’t bottomed out, that may be true, but consider a couple of things. If interest rates rise just 1%, the home price would have to drop nearly 9% for you to stay at the same payment before the interest went up. A couple of other things to consider, rent prices are rising at nearly 6% across the country.
Another factor is that we only have so much land that we can build on. We just aren’t making more land, so there isn’t an unending supply of Real Estate, even in severely depressed Real Estate Markets. This year, our new housing starts across the United States will be around 500,000. One of the lowest in decades, but in the next 4 or 5 years with population increases it is projected that the U. S. will need 16,000,000 new housing units just to keep up with increases in population. What do you think that will do to home values?
Too many people talk about a home as an investment. I am not saying that it isn’t an investment, but in only talking about it as an investment isn’t doing it justice. It is a basic human need, everyone needs shelter, and the for the vast majority of people, the dream of home ownership is still a great motivating factor in life. It is true, the net worth of a home owner versus a renter is vastly greater.
Now is the time to buy, not in the Spring, but now! I know that it is not much fun to move in the Winter. We know, 2 of our last 3 moves (over 10 years) have taken place in either January, or in the middle of a huge Spring snowstorm. The truth is that you can’t afford to wait, if interest rates climb just a little, it will make a home much less affordable for you. This is no secret, Investors are already buying homes in droves, so prices will eventually begin to climb across the board and in some price points we are already seeing that very thing. Mark Twain once said something like “When your life is nearly over you will regret more the things that you DIDN’T Do than the things that you did do.”
Now is one of those times! It is something that if you are in a position to do so, you need to look into buying a home! To get you started, contact either Darcy or myself, we would love to earn your trust and help you live your dreams with a home for you and your family! We can guide you on the path to achieving the American Dream!