So, what are the facts today?
Most "experts" agree that home prices have returned to levels unseen since October of 2003. AND, even the "Castaways on Gilligan's Island" know mortgage interest rates are the lowest in 50 years (still averaging 4.75% for a 30 year fixed as of this post). So, as the KCM CREW so deftly point out in their excellent post, Look at the Cost, Not Just the Price:
"Let’s assume for the sake of this example that you purchased a home and borrowed $200,000 via a mortgage. In 2003, your monthly mortgage payment (principle and interest) would have been $1,192.68. If you borrowed the same $200,000 today your monthly payment would be $1,013.37. Same house, same price but the COST is $179.31 less a month. That’s a savings of over $2,000 a year! Over the life of a 30 year mortgage, you would save over $64,000."
I know what you're thinking now...
Well, that's all well and fine, coming from a real estate broker but you have your own agenda!
Yes, I do. And here it is:
Ok, ok; still have your doubts about buying a home in Ocean County, NJ? Have you ever heard of John Paulson? Perhaps, you may be interested in hearing what he had to say about the "Housing Market" last week?
“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”
– John Paulson 9/27/2010