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Buying Real Estate: Is This the Best Time in History to Invest?

Buying Real EstateI just read an op-ed piece in MarketWatch that says if you’re considering buying real estate, this is the best time in history to do so. While plenty of pundits are sounding the real estate alarm bells for a variety of reasons, editor Jeff Reeves thinks the hysteria over another housing crisis is nonsense. In fact, he says there has never been a better time in history to get into real estate, particularly for investors. Here’s why:

  • Today’s real estate environment is healthy. Median home prices have hit an all-new high, rising past pre-recession levels. Home prices nationally are up by 5.9% with new home sales powering a seven-year high.
  • Check out this com “bubble index”which shows how the conditions are different than they were 10-years ago.
  • Housing starts ran at a seasonally adjusted 1.21 million annual rate. That’s a 2.1% increase over June and more than economists surveyed by MarketWatch had forecast, at 1.18 million.
  • Foreclosures are at their lowest rate since 2008, meaning people aren’t burying themselves in debt like they did before.
  • Real estate values in some major markets in the US are still below pre-crash levels. These values have returned to their right amounts and have stayed there.

Some experts think the key to buying real estate is the online marketplace. Investors now have tools to research and invest like cash flow calculators, allowing them to input estimated vacancy rates and rental incomes from potential properties. Investing is evolving too, with expanded financing options now available. Things like digital MLS listings make it much easier for investors to research properties.
The recent data provided above proves that real estate is still one of the best investments you can make. Let’s look at the alternatives. Just consider that a 10-year Treasury yield is less than 1.6% annually and investment-grade corporates aren’t much better. Small-cap biotech stocks and emerging-market equities are risky too. Experts say no one should put all their savings into one or two properties but should look to a diversified portfolio.
So, what do you think? Is this the best time in history for buying real estate? YES! If you’re ready to sell in order to purchase a new home, and you live in Santa Barbara County, it’s time to let me help you with an in-depth evaluation of your property. If you are looking to purchase a new home in Santa Barbara, my comprehensive website will help you get started on the exciting path to purchase, whether you’re an investor or searching for a new dream home for your family. Either way, I’ll be your guide. Call me at 805.886.9378 or email me at Cristal@montecito-estate.com. Allow me to put my 25+ years as a real estate professional to work for you.

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