I read a great article over the weekend on the BusinessWeek web site that was forwarded to me by my friend and fellow Leading Real Estate Companies of the World member, John D’Ambrogio at Baird & Warner in Chicago. The article is entitled, “If You Don’t Buy a House Now, You’re Stupid or Broke.“ Written by Marc Roth, the article says that if you are looking to buy a house, and you don’t act soon that you will regret it. The reason Roth states is historically low interest rates.
With 30-year fixed-rate loans with no points or fees hovering around 5%, this is the lowest rate that we have seen in nearly 40 years. Thus, it would be reasonable to conclude that this is the perfect time to buy a home. I think that this is especially important to point out to our relocation clients who are considering a home purchase in Houston. This might also be just the fuel needed to assist them in finding viable buyers for their homes in their departure cities. As I have pointed out in various blog posts throughout 2010, many people relocating to Houston have been plagued with the challenge of selling their home in their previous location, before being able to purchase a home in Houston, based on the fact that they may be leaving a housing market that was harder hit and slower to recover than Houston has been.
So how do you impart this information about historically low interest rates to prospective buyers in markets throughout the U.S.? I think that as a real estate and relocation community, this information is important to use in combination with our overall marketing efforts, including highlighting it in the articles and blogs and other venues we have for getting such information out there to the public sector. Just like with the recent extension of the home buyer tax credit, we must use all pertinent facts and figures to both alleviate specific concerns shared by prospective home buyers, while continually reminding them of the many advantages of purchasing a home at this time.
On a local level, it is equally important to remind clients who may be sitting on the fence regarding whether they should buy now, or wait and watch to see what happens. Waiting may in fact end up costing them more money in the long run. It is our job to point out the benefits of purchasing now, whether than taking a wait and see approach.
Please let me know how you weigh in on this issue, and how you are working to get the positive information out there to your real estate and relocation clients.
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Truer words were never spoken!