All signs point to now as the right time to buy
The ironic bit of this troubled economy is that this is an advantageous time to buy a home. A huge purchase doesn’t seem wise in the air of unemployment, higher prices and an unstable stock market. But by all appearances, housing prices are going down while everything else goes up.
“It’s like our parents used to spend 10 to18 percent and now, rates are now at 4 percent and lower,” Realtor Sandy Maltese says.
Last month, the Primary Mortgage Market Survey set a record low with a 4 percent rate for a 30-year mortgage and 3.28 percent for 15-year fixed-rate mortgages. Maltese urges contemplative buyers to act now.
“Payments can be so much lower right now and rents are rising,” she says.
Maltese and her group, DFW Urban Realty, work with many properties in the Oak Lawn/Uptown area. With many rental properties throughout, renting has been cheaper than buying. Where sellers unintentionally become landlords, rents rise so owners can afford to keep paying on the property.
“People can either downsize to fit into a rental space or can afford to buy,” she says.
Realtor Derrick Dawson agrees.
“Most people don’t realize they qualify to own their own home,” the Texas Pride Realty agent says. “I’d encourage anyone interested in owning a home to seek a lender today and find out if they qualify. It is free to do.”
In the Sept. 29 article “Good Time to Lock in a 30-Year Fixed Home Mortgage Rate?”, the International Business Times advised to evaluate the probability of a rising fixed mortgage rate to its decline probability.
The piece points out that historically, upside risk is higher than downside gain which should encourage buyers for nailing a fixed rate now.
Maltese points out that initiative is what’s needed. Qualifying for financing is crucial , but after that, then comes the nerve to plunge in now to lock in a low rate and have a home sweet home.
“Here in Dallas, I say give it a shot,” she asserts. “If a property, especially a foreclosure, is marked low, there will be offers for it quick. If you’re paying cash, you jump to the front of the line, but that’s not always the case. At the very least, show up and try.”
This article appeared in the Dallas Voice print edition October 7, 2011.