Real Estate Pro Articles

Top 5 Reasons Why Today is the Best Time to Buy a Foreclosed Home

[Valid RSS feed]  Category Rss Feed -
By : Karim El Sheikh    99 or more times read

One canít help but think that the grim news on the housing market may never end. This is in view of the latest housing data that stated the prices of houses continue to decline and a growing number of houses are up for sale.

But the truth is, along with this bad news comes more compelling reasons to get serious about purchasing a foreclosed property as soon as possible. For one, the prices of nowadays have hit rock bottom that in fact, it actually presents a considerably better deal than renting one.

So to prod you to action, here are the top 5 best reasons you should act now and not wait any longer.

  1. Renting no longer presents a more feasible option. Why? This all boils down to the basic lesson of supply and demand. In view of the growing number of foreclosures, the demand for rentals has significantly increased over the past years. Meanwhile, the supply of rental homes and units has still not kept up with this demand. This causes the rental prices to shoot up. In fact, by 2012, rental prices are expected to increase by another 5 percent.

    Additionally, a recent market analysis showed that buying a home makes more financial sense as opposed to renting. No surprise there, as Phoenix and Las Vegas residential properties hit their time lows. Even in Atlanta and Dallas, where housing markets are known to be relatively stable, the buying offers have been observed to be stronger than renting as an alternative.

  2. The worst phase of the housing price decline is almost over. Over the past years, the housing markets have been down to 32 percent. Experts believe that we are currently at an important pivot point where the nation is slowly moving away from the steep decline of housing prices to a longer period of stable prices.

  3. The mortgage rates today are at its historic lows. Right now, mortgage rates are offered at 4.6 percent interest rate for a 30-year fixed rate mortgage plan. However, the assumption that these rates will continue to fall is a risky bet. In fact, the projection for 2012 is at 5.7 percent, which is significantly higher than this year.

  4. Acquiring mortgaged loan approvals is more likely to become difficult, than easier. There is a new regulation that is up for consideration that would require banks to continue selling at 100 percent of the mortgages to hold the financial borrowers at much tougher lending standards.

  5. Less competition. While there are several people continuously scouting for bargain purchases, the rather anemic pace of foreclosure home sales is proof that there are lesser number of serious buyers. This means you are in a better position to negotiate and strike a good deal.

So if you are still sitting it out and waiting for lower rates and better deals, there is actually no better time to act than now, or otherwise, you may find yourself waiting in vain. Check out the investment opportunities and get expert advice from your real estate agent. You may just be missing out on some really great bargain deals. is your online resource for finding foreclosures for sale in your area. Search all the latest listings today.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles