Why Buyers Should Not Consider Purchasing A Home

1005 WordsDec 15, 20155 Pages
After increasing my own financial awareness and witnessing the financial journeys of others during the past recession, I find that boomerang buyers should not consider purchasing a home as their sole financial investment. Mortgages with ballooning payments mixed with hopes of future refinancing are a dangerous combination. These factors precipitated the last housing bubble and the eventual recession period. In order to learn from past behavior, home buyers should ensure that they habitually save for a “rainy day fund” because financial rainy days have proven to be cyclical. Purchasing a home should be a process that results in a buyer feeling comfortable with the home they choose versus simply selecting the largest mortgage for which they…show more content…
For example, Arizona’s metropolitan cities of Mesa, Phoenix and Scottsdale are considered areas within the United States that have made the best recoveries since the 2006 crash. In July of this year, Michael Orr, the Director of the Center for Real Estate Theory and Practice, stated that “In the past two months the number of building permits in the $200,000 to $500,000 range has increased,” but this does not mean that Arizona’s metropolitan housing markets are completely in the clear. Home buyers are encountering steep competition when looking to purchase affordable homes. According to Realtor.com’s Advance Read of September Trend, the 2015 housing market has turned into a “buyer’s market.” U.S. Housing Sector Shifts to Buyers Markets in September author Miho Favela highlighted three key statistics supporting Realtor.com’s claims: • National median list price is $230,000 down decreased 1 percent over August and up 6 percent year-over-year. • Median age of inventory is now 80 days, up 6.7 percent from August, but down 5 percent year-over-year, reflecting the seasonal trend for fall listings to stay longer on the market as the day becomes shorter. • Listings inventory will likely end the month down 0.5 percent from August. By the end of 2006, over 1.25 million foreclosures occurred. The bureau of Economic Analysis and Census Bureau listed a timeline of residential investment, permits, and residential
Open Document