Over the last year, the Federal Reserve has been following their policy of “quantitative easing” and this policy has produced positive signs that have caused the stock market to surge to new highs plus it’s also had a positive effect on the housing market as well.
Home prices have jumped by 8% or more depending on the area. These gains have been the best that the housing market has seen since 2006 but the question that many people have is if the gains are artificial is another housing bubble around the corner.
Is It Time To Buy Or Wait?
Since consumers have benefited from the Fed’s actions and it’s now more affordable than ever before to get a mortgage loan since mortgage interest rates are still historically low. Anyone would think that now is the best time to buy a home right. The answer to this is yes.
Yes it’s the right time to buy a home since mortgage interest rates are at their lowest since the early 1970’s and there may not be another opportunity for home buyers to get into a home as affordably for another 30 years or more
What’ important to mention is that now is the right time to buy especially since there are more ways to homeowners to get a mortgage loan thanks to options like FHA, VA and HUD loans.
But What About Another Housing Bubble?
Many Real Estate experts fear that another housing bubble will come since incomes have only risen at just 2% in the last year compared to the amount of people who have borrowed and bought homes. But should homebuyers follow the advice of the “experts” or take advantage of the current opportunities that this Real Estate market offers them?
Hopefully more consumers who are qualified to buy a home in this Real Estate market will take advantage of the great opportunities the current Real Estate market and use sound judgment to buy homes that they can afford, because, pending bubble or not, opportunities to buy a home as affordably again may not come around for many years.
To view the latest Orange County homes for sale contact Fred Sed & Associates today by calling us at (949) 272-0125.