Is this really the righttime to buy real estate?
Shouldn’t we wait to buy a home?
4 Things You Should Know1. It Make Sense Financially2. Buying Is More Affordable Than Renting3. A Short Sale Can Be a Grea...
It Make Sense Financially
Return on Investment50      January 1, 2000 – March 1, 2012                                                            36....
The Key: Sell High and Buy Low2000-2005        2006            2007-2010    TODAY 2012-2015                               ...
Projected Appreciation & Depreciation                 Annual Price Change3.75                                        3.23 ...
Mortgage Rates – 30 year fixed5.25  54.75 4.54.25  43.75       1/01/2011                   Today                          ...
Case Shiller Pricing Index     2000    2003            TODAY
Same Price, Major Difference in Cost            Price    Rate*                       P&I**  2003     250,000    5.83      ...
Buying Is More Affordable     Than Renting
Rent vs. Buy                          Best to Rent“Certainly prices have                     2%continued to fall nationall...
Rents Rising Rapidly$1,200                National Average Rent$1,175$1,150$1,125$1,100$1,075$1,050$1,025$1,000         20...
Rents Rising Rapidly“Vacancies in the  home-rental market will push average rental   rates up as  much as 5% by early 2013...
A Short Sale CanBe a Great Deal
Short Sales Surging600          Short Sales in thousands                                               500500             ...
Value by Sale CategoryType of Sale             % of ValueNon-Distressed Sale        100%Short Sale                 79%Fore...
The Experts AreSaying Buy Now
Buy                                                                          Rent      Housing Cost Over        Next 30 Ye...
Buy                                                                         Rent           Retirement Fund             Cre...
Chris Thornberg Chris Thornberg is a former UCLA economist and a founding principal of Beacon Economics. 2007 -“What’s the...
John R. Talbott             2003            2006Huffington Post 12/20/2011                                    Today
Warren Buffett Speaks Out                 “If I had a way of                  buying a couple                hundred thous...
This Week’s CoverBarron’s    Magazine
                                        Are you ready to buy a home?        Contact me today!    I would love to be your g...
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Is Now a Good Time to Buy a Home?

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A few things to consider as you think about buying a home in today's market.

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Is Now a Good Time to Buy a Home?

  1. 1. Is this really the righttime to buy real estate?
  2. 2. Shouldn’t we wait to buy a home?
  3. 3. 4 Things You Should Know1. It Make Sense Financially2. Buying Is More Affordable Than Renting3. A Short Sale Can Be a Great Deal4. The Experts Are Saying Buy Now
  4. 4. It Make Sense Financially
  5. 5. Return on Investment50 January 1, 2000 – March 1, 2012 36.730 18.410-10 -1-30 -24.4-50 Dow S&P NASDAQ Real Estate MSN Money.com, Case Shiller
  6. 6. The Key: Sell High and Buy Low2000-2005 2006 2007-2010 TODAY 2012-2015 Optimism Euphoria Fear Point of maximum opportunity Point of maximum risk in investment Optimism Depression
  7. 7. Projected Appreciation & Depreciation Annual Price Change3.75 3.23 3.323.25 2.712.752.25 1.751.751.250.750.25 - .18-0.25 2012 2013 2014 2015 2016 Home Price Expectations Survey 12/2011
  8. 8. Mortgage Rates – 30 year fixed5.25 54.75 4.54.25 43.75 1/01/2011 Today Federal Reserve
  9. 9. Case Shiller Pricing Index 2000 2003 TODAY
  10. 10. Same Price, Major Difference in Cost Price Rate* P&I** 2003 250,000 5.83 1,471.66 TODAY 250,000 4.00 1,193.54 Monthly Savings 278.12 * Freddie Mac 30 Year Rate **Principal and Interest
  11. 11. Buying Is More Affordable Than Renting
  12. 12. Rent vs. Buy Best to Rent“Certainly prices have 2%continued to fall nationally,but rents have been risingso this would be thelowest price-to-rentratio that we’ve seen.”- Jed Kolko,Trulia chief economist Best to Buy 98% Source: Forbes 03/23/2012
  13. 13. Rents Rising Rapidly$1,200 National Average Rent$1,175$1,150$1,125$1,100$1,075$1,050$1,025$1,000 2009 2010 2011 2012* 2013* 2014* * projected Source: Marcus & Millichap 1/26/2012
  14. 14. Rents Rising Rapidly“Vacancies in the home-rental market will push average rental rates up as much as 5% by early 2013.” Source: HousingWire 3/16/2012
  15. 15. A Short Sale CanBe a Great Deal
  16. 16. Short Sales Surging600 Short Sales in thousands 500500 397400 354300 274200 103100 0 2008 2009 2010 2011 2012
  17. 17. Value by Sale CategoryType of Sale % of ValueNon-Distressed Sale 100%Short Sale 79%Foreclosure Sale 71% RealtyTrac 02/2012
  18. 18. The Experts AreSaying Buy Now
  19. 19. Buy Rent Housing Cost Over Next 30 Years* * Assuming payment of $1,500 for both rent and mortgage; a fixed rate mortgage and an annual rent increase of 3.2% for inflation. Forbes.com 10/13/2011
  20. 20. Buy Rent Retirement Fund Created from Homeowner Equity After 30 Years* * Assuming $300,000 current value with a 1% annual appreciation rate for residential property. Forbes.com 10/13/2011
  21. 21. Chris Thornberg Chris Thornberg is a former UCLA economist and a founding principal of Beacon Economics. 2007 -“What’s the point of buying today when you can buy it for 10 percent less in a year? For the life of me, I can’t figure out that logic.” 2012 -“Even if you’ve been thinking about buying a condo in Vegas or buying a condo in Miami, buy now. Now is a great time to buy a home.”Source: Orange County Register 1/12/2012
  22. 22. John R. Talbott 2003 2006Huffington Post 12/20/2011 Today
  23. 23. Warren Buffett Speaks Out “If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”
  24. 24. This Week’s CoverBarron’s Magazine
  25. 25.       Are you ready to buy a home? Contact me today! I would love to be your guidethroughout the home-buying process.  

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