Today I wanted to share with you an article that was published by RISMEDIA that I thought was interesting and worth sharing. Please read and share your opinions as I will at the end of the article:
RISMEDIA, October 12, 2010--Nearly two-thirds of Americans say the current economic situation is making them less likely to buy a house, according to a new national survey by FindLaw.com (http://www.findlaw.com), a popular legal information website.
Sixty-three percent of American adults say they are less likely to buy a house because of the current state of the economy. Despite record-low mortgage rates and an abundance of houses available on the market, only 8 percent of people say the current economic situation makes them more likely to buy a house. About a quarter of people – 28 percent – say they are neither more likely nor less likely to buy a house because of the economy.
In particular, the current economy is driving lower-income individuals and families out of the market. People with annual incomes less than $50,000 were significantly more likely to say they are less inclined to buy a house than people with higher incomes.
"The current economic situation has greatly changed the dynamics of the housing market," said Stephanie Rahlfs, an attorney and editor with FindLaw.com. "Although mortgage rates are near record lows, stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures. Together, these factors are causing many people to shy away from the idea of buying a house. Buying a home, selling a home and owning a home are all becoming more complicated, and it's important to know the ins and outs of contracts, finances and your rights as a buyer, seller or owner."
Well there you have it.....the reason many are choosing to wait to purchase a home. How do you feel about what you've read? Does this rationale make sense to you?
Here is a quote from Warren Buffett one of the most wealthy and savvy businessmen on earth.."We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
In essence as an investor in businesses he is simply saying that when most people are fearful as witnessed by this article, they sit back and do nothing and have paralysis to do anything when in fact that is often the best time to act. Comparing this to the housing market, now more than ever is the time to purchase. The general public spend so much time seeing through the rearview mirror and less from the windshield.
My take on the above article is that while people need to be cautious with their money and careful in how they spend it, making an investment into a home may have never been a better option. Put it this way....at the end of every night, you can either rent your pillow or own it. In other words, you either pay someone elses' mortgage or you pay your own. Interest rates and home prices as they stand today present one of the best one/two punch opportunities for people that we may ever see.
When the stock market hit a tremendous low in March of 2009, if the average person threw a dart at a board of stocks that was listed on the DOW or S&P, he/she would have seen in most cases no less than 60% growth or more. Why? They hit a bottom and for those who didn't take money out of the market but put it in the market they capitalized tremendously.
The housing market doesn't have the capability to rebound as quickly but one day soon, some will look back and say....I WISH I HAD.....while others will say...I'M GLAD I DID...
Which one will you be?
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