Is it “Safe” to Purchase a Home Now?
July 31st, 2013 at 8:29 pm by Joanne V. McCann
While I don’t subscribe to having a crystal ball to predict the future, one can study the past historic trends in real estate and come up with your own conclusion as to whether a home purchase would be considered a “safe” and fiscally sound investment. Below are a few comparisons:
- Using the year 1989, the average price for a loaf of bread was .67 cents. Today it is $2.78
- A gallon of gasoline cost .97 cents (oh those were the days!) Today it’s above $3.50
- A new car would cost around $15,500. A new car in today’s world is the same as my first home which I purchased for $30,000. (and 7 years later sold for over $110,000)
- In 1989 a mortgage for a $94,000 home at 10% costs $825. per month. That same house today would be worth roughly $166,000 and the payment would be $837. with todays low interest rate of 4.45%.
Today you are paying approximately four times more for a loaf of bread, three to four times more for a gallon of gas, twice as much for a new car and $12.00 more per month for your home. Like all investments there are inherent risks of which home ownership can be included but if you study the historic trends you can avoid the potential pitfalls with knowledge to make an informed, smart decision.
When ready to take the plunge into home ownership why not let me navigate for you!