Why buying a home now makes sense

Let me say this right upfront. As a long-term investment, homeownership is STILL one of the best investments for individual households.

“Why?” you may ask. After all, the headlines say the housing market is down and out, with defaults rising at an alarming rate, and mortgage markets so frozen that buyers can’t get a home loan at any price.

What buyers need to realize is that housing markets, like all markets, inevitably have their ups and downs. And homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits.

Despite the turmoil in mortgage lending, if you have good credit, a job and steady income, you will find there is still plenty of mortgage credit to be had at good rates. For well qualified buyers, rates are running at about 6 1/2 percent, a very good range on a historic basis.

Another thing to keep in mind is that there are a lot of homes for sale, more than there have been in a very long time. That means you have a great selection from which to choose and should have no problem finding exactly what you’re looking for – and, you’re in very good position to negotiate a good deal.

Once again, it’s important to understand that the long-term fundamentals for housing remain positive. Look at anticipated population and household growth; consider the increasing scarcity of available land in metro markets where jobs are located and where people want to live. Over time, these factors will help drive up the value of housing.

One more thing to consider: To make the argument that prices will go down, you have to believe that the cost of building a home is going to go down. That won’t happen. Land, material and labor costs will only keep getting higher. So the price of new homes will increase overall, and the price of existing homes, due to market competitiveness, will go up as well.

A home should first and foremost be a place in which to live and raise your family. Too many people in the recent past got carried away with the idea of making a quick buck by purchasing a home or condo and then reselling it right away at a profit. Those days are gone.

The bottom line is this: if you are looking for a place to live and for a solid long-term investment, now is a good time to buy a home.

For more information on why now is a good time to buy, visit www.nahb.org/timetobuy or go to the SHBA Web site at www.shba.com and click on the “Buy New, Buy Now” link.

If you are considering a new home purchase or if you want to pick up some ideas for your upcoming home improvement projects, plan to attend the Fall Festival of Homes the weekends of Sept. 28-30 and Oct. 5-7. The SHBA’s annual new home tour event presented by Fred’s Appliance will feature 43 homes from 26 different builders throughout the Spokane area in all price ranges. Associate sponsors for the event are Tomlinson Black, Great Floors and Countrywide Home Loans. For a complete list of builders and sponsors as well as show details, go to www.spokanefestivalofhomes.com or call (509) 532-4990.