It's A Good Time To Buy
If someone is thinking about delaying a purchase because they want to "time the market" to get the very best deal -- well, that is almost impossible to do with precision. In an area with declining market prices, reliably picking the 'bottom' of the market is just guessing. In the meantime, interest rates could end up being higher, which means monthly payment could be higher also.
Most home buyers will live in their home for seven years or more. If that's the case, it makes more sense to buy than to rent -- in most any market. Homeowners that have secured a fixed-rate loan can make investment plans knowing that they will have the same monthly payment for 30 years. When renting a place to live, a renter can expect the rent to increase at least once a year. How much will rent be 10, 15, or even 30 years from now?
There are also tax benefits with home ownership. The interest paid on the loan, and the property taxes, can be deducted from an owner's gross income. This will reduce the owner's taxable income, which will, in turn, lower the amount of taxes that the homeowner will need to pay. Homeowners will save many thousands of dollars through income tax deductions.
The average yearly appreciation on a home, which will vary from year to year, is approximately 5 percent. In some years, the home may depreciate in value. Over time, however, owning a home is one of the very best financial investments a person can make. The richest people have accumulated wealth through home ownership and real estate investments.
Homeowners also have the freedom to do whatever they want to makes their home a comfortable place for themselves and their families. Homeowners get the benefits of any improvements they make, plus they get to live in an environment they have created. It's "home", not a temporary place to sleep and eat until a home is bought.
When a person rents, they are normally limited on what they can do to improve their home. First, renters have to get permission to make certain types of improvements. But it doesn't make sense to spend thousand of dollars making improvements when the main person who benefits is the landlord.