Is Buying a Home in Today’s Economy a Good Idea?

Is Buying a Home in Today’s Economy a Good Idea? As a long-term investment, homeownership is still one of the best investments for individual households. “Why” you may ask? After all, the headlines say the housing market is down and out, with defaults rising at an alarming rate, and mortgage markets so frozen that buyers can’t get a home loan at any price.

What buyers need to realize is that housing markets, like all markets, inevitably have their ups and downs. And homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits. Despite the turmoil in mortgage lending, if you have good credit, a job and steady income, you will find there is still plenty of mortgage credit to be had at good rates. For well-qualified buyers, rates are running at near historical lows. And home prices are literally 50% of the cost for many homes in San Diego, from 2004-2005 to today.

Homeownership is a solid stepping stone to a future of financial security and the single largest creator of wealth for many Americans. Over the long-term real estate has consistently appreciated, even through periodic adjustments in local markets in response to economic conditions. On a national level, home appreciation has historically increased 5-6 percent annually. Don’t wait for prices to rise, buy low and sell high. Take advantage of the housing crisis and make it a housing opportunity for you and your family.