As I a work today; I am brought to thoughts of family; changes in my life and the effects real estate opportunities has had on our quality of life.
In particular, during my 35 years, I have seen many ups and downs in the market place; times when real estate activity was slow and housing unaffordable. In the early 80s, sales slowed and affordability disaapeared because of the untenable rates of interest. Similarily in the 70s the market was arbitrarily cooled off by the costs of new (short term) tax levies and in the 90s a period existed while purchasing power had to struggle to catch up to the price increases of the previous decade.
Today, in this market, we have a downturn in sales because of global uncertainty but unlike any other time;affordability is at its best. I have never seen a time when financing was so attractive (abeit a little more difficult to capture). Think about the effects that should be reflected in our investment properties if the cap rates are lowered to match current 'prime'. Value is inversely proportional to the rate; investors of income proerties should be esctatic.
The best news is for the family that are buying today; or moving up. If job security exists, that family can get a mortgage at 4-4.5 % ; effectively making a 200,000 home more affordable than rent. The financing factor alone is significant but that is enhanced by the price opportunities and the general pricing stabilization of todays marketplace. The fact is for families planning for the future; the current times are also those of great opportuntiy