With the crashing real estate market, there has never been a better time to buy. Interest rates on home loans remain very low, banks are flooded with foreclosed homes that they are trying to rid themselves of, and many people are just simply afraid to buy in case the market collapses even further. For those that have the stones and the cash, there has likely not been a better time in their lives to buy a home to live in or an investment property. Visit cash for houses Mesa for more details.
Interest rates on homes for properties in neighborhoods have been hovering at a very low level. When I purchased my town home last Spring, my banker was very excited to lock me in or five percent. He could not fathom that the interest rates would drop any further and wanted to lock me into, what he considered, a steal at five percent. What he didn’t expect (and few did) was that over the next year, interest rates would fall by another half percent and hover between the four and a half and five and a half percentage. A friend of mine bought a townhouse in Tempe this Spring and got a lower interest rate than I did last year.
Banks are flooded with foreclosed homes that they are trying to rid themselves of. Drive through any Tempe neighborhood and you will see one or more foreclosed homes. During the housing bubble, many less than smart people purchased houses with the hope that the market would keep growing and they would get rich. People were purchasing homes well over their means, with the idea of refinancing on the increased value of their home and have some free cash. This strategy backfired as the home market regressed to sanity. When all of these people realized they were not going to get rich they stopped paying their mortgages and the bank got stuck with the homes.
Many people are afraid to buy in case the market collapses further. Folks often don’t understand the concept that the time to buy is when everybody else is selling and the time to sell is when everybody else is buying. This is a simple concept and is also expressed with the concept of buy low sell high. Lots of people got burned by the housing market crash ofthe and are now afraid to jump back in. This gives the rest of us a great opportunity to buy homes that we can afford.