Yesterday I posted an article about the real estate market in Portland Oregon . I expressed my oppinion that it was A_Good_Time_TO_Buy_Real_Estate . A reader challenges that oppinion with a resounding ” are you kidding me ” referrencing an article of the rise in foreclosure rates in Portland and around the country.
It is a good question and one that deserves a good answer. Throughout the entire history of mankind, there has never been a moment where man has bitten off more than he could chew. In todays fast paced society and an eagerness of most everyone to have instant gratification to there life styles, prudent purchases are often over looked. It is quite easy to get caught up in the ” everyone is doing it ” menatlity. That does not mean that it shows fiscal responsibility.
In short there is nothing that can be done to those who have walked to the end of the plank only to see it sawed off behind them.
The percentage of those that have done so is a substantial amount. However the larger percentage of consumers have not and there should be no reason at all for anyone who wants to purchase a home to delay that purchase. Interest rates are still very low, Tammy_Wittren_of_Northwest_Mortgage a mortgage Broker/Banker specializes in loans taylor made to the Portland Market would be happy to update you with the current rates.
The reasons to purchase now and why this is a great time to buy are for the following reasons :
- The past two years real estate across most of the country has been depressed and in some cases a major decline.
- Real Estate is now begining to show a comeback and a rise in prices in many locations
- For those Sellers who have had there home on the market for a while without an offer , they may be willing to look at strong buyer more than there asking price.
- With the market improving real estate sales prices will soon begin to go up.
- Seeings how the real estate market in Portland has not been affected as the rest of the country, the rise in prices here will most likely be more severe than other parts of the nation.
So just like the stock market the time to buy is when it is at its lowest or close to its lowest. Not after it has already made the turn and you have missed out. For those that have been in the real estate market in the Portland Oregon area for any time can testify to. Once the market begins that upward surge it can make leaps and bounds in the tens of thousands very quickly. Unlike reductions that are done in smaller amounts and reluctanly by sellers.
Is this the right time to buy? The answer is a resounding YES! For as you have seen in my previous post the last 12 months ending in April showed an appreciation rate above 11% in Portland. Using that number only and not any additional percentage that might happen should the market take off again, 11% a year on a $300,000 home is $33,000. Or $16,500 for 6 months or $8,250 for 3 months. So every 90 days you wait you are in effect losing $8,250 worth of buying power.
Portland Flips Real Estate Blog 