All the TV and newspaper stories say “Real estate is coming back”, and “it’s a great time to buy a home”. Yeah, OK that makes good stories and sell more ads but if I’m really in the market to buy a Portsmouth NH home tell me “WHY” is now such a great time and “WHY” should I buy now and why is buying better than renting?
I’m glad you asked those questions; here’s the answers with a current, real world example.
- Portsmouth NH Home prices are now at about the same level they were in 2003
- Interest rates are still at one of their lowest points in history
- In 98% of the major metro markets in the US it’s more cost effective to buy a home than to rent one. The only two exceptions are San Francisco and Honolulu. (source: Trulia.com)
Right now in a terrific condominium neighborhood in Dover we have for sale a 3 bedroom, 2 bath condo with a full basement, 2 dedicated parking spaces, AND a detached 1 car garage. Take a look here:
In 2003 a TWO Bedroom, 1.5 bath unit, in the same complex, with no garage sold for $175,900. The 2012 asking price on our THREE bedroom, 2 bath WITH garage? $175,000!
In 2003 when the 2 bedroom home sold for $175,900 interest rates were around 6% for a 30 year, fixed rate mortgage. That would make your principal and interest payment on $175,900 with no down payment, $1,054.61 plus taxes and insurance.
Today, in 2012, interest rates for the same 30 year, fixed rate mortgage are around 4% or less. On a $175,000 mortgage the principal and interest payment is $835.48 plus taxes and insurance. That’s a $219.13 savings on a larger home with a garage. And that’s why now is such a great time to buy.
Figures like these are typical for a Portsmouth NH home purchase in 2012. You can buy at 2003 prices with the best interest rates in history and it’s a better deal to buy than to rent.
I could go on and on about pride of ownership, no rent increases, fix your home the way you want it, and so on but I think you’re getting the idea why buying now is such a great deal.
Even investor icon Warren Buffet thinks it’s a great time to buy: “If I had a way of buying a couple hundred thousand singly family homes I would load up on them.”
“Affordable home prices and record-low mortgage rates have been the hallmark of the real estate marketplace for several years running,” says Jim Weichert, president and founder of Weichert, Realtors. “Purchasing a home now makes even more sense than ever, given the steadily increasing expense of renting and the growing probability that home prices will soon be on the upswing.”
Lawrence Yun, NAR chief economist had this to say: “If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”
The prices are right, the timing is right, and the interest rates will never be more right; give us a call or email and let’s get started finding you a Portsmouth NH home.
Visit NewHampshireMaineRealEstate.com to see all the New Hampshire and Maine house, condos, and land for sale. Call my partner Ann Cummings and I to ask any questions you may have and to see any homes for sale in the New Hampshire Seacoast and southern Maine areas. We’re “The Seacoast Real Estate Experts”
Trulia.com: “AMID RISING RENTS AND RECORD-LOW PRICES, HOMEOWNERSHIP MORE AFFORDABLE THAN RENTING IN 98 OUT OF 100 MAJOR METROS”