This Is a Good Time to Buy a House

The heady housing bubble of the mid-2000s is now officially history, replaced after a gut-wrenching fall in home prices in most areas by a dreary period of stagnant prices reinforced each month by new waves of foreclosures entering an already saturated market. For those unlucky enough to have bought a home between 2004 and 2006 in anywhere but a few fortunate locations, the last half-decade has likely been a waking nightmare punctuated by recurring worries over when prices would rise again. After all, for the average young family a house represents both its largest single investment and the bulk of its net worth, large drops in which can upset years of careful financial planning.

For those families and investors looking to get into the housing market, the pricing uncertainty of recent years is a sobering counterpoint to the overconfidence that caused the crash. The monthly reports that showed few homes being sold and even fewer being built around the country provided periodic reminders of the risky loans and poor choices that led banks and homeowners alike into this morass.

Recently, however, the market clearly turned a corner. No longer is it time to panic–it’s time to buy! Both those who held on to their homes through the housing market crash and those who waited to pull the trigger on a purchase are feeling renewed optimism as measures of home-builder confidence have surged along with physical housing starts during the second half of 2011. Prices have also increased measurably in 90 percent of the largest housing markets, lending support to the idea that nationwide real estate prices are beginning a long climb to new highs. For savvy investors and new homeowners looking to get in on the ground floor, now is the best time to buy a house in generations.

There is currently money to be made in real estate in all regions of the country, but the real big money can be made on a new home investment in areas where prices have fallen the farthest as well as where population and job growth will be strongest in the coming years. The recent economic collapse temporarily arrested the long-term migration of Americans from the north and east to the western states, and unemployment has fallen in Michigan and Indiana while rising in places like Nevada and Arizona. This trend reversal will likely prove temporary, however, as the Rust Belt’s manufacturing base continues to decline.

Driven by a resilient, technology-based economy, the bulk of America’s future population growth will continue to occur along the West Coast, albeit only in select areas. Overbuilt, overcrowded Southwestern urban regions like Los Angeles and Phoenix will continue to underperform, however, relative to forward-looking Northwestern locales known for their outstanding quality of life. Indeed, by every conceivable metric, the greater Seattle metro ranks as one of the top ten most desirable American cities for singles, young families, and retirees alike. Other cities in Washington State are not far behind. From Vancouver to Spokane and all points in between, the incredible cultural opportunities, boundless outdoor spaces to explore, favorable climate and diversified local economy of the state make it a truly great place to live. With savvy real estate investors expecting the local housing market to reflect this reality in the coming years, ordinary folks in the market for great deals on new homes here must recognize the historic opportunity at hand as well.

Americans have long been known for their stubborn optimism, and they are not about to change. The recovery is finally here, and it is once more a great time to buy a house!

When you are ready or if you still have some questions about Real Estate,  contact Albert Clark immediately. Let’s get you into your dream home now!

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