The American Dream – A Great Time to Buy
Statistics state that an average homeowner changes homes approximately every seven years. Young married couples rent their first apartment four two years on average. Saving a down payment and beginning the search for their first home is the American dream. National interest rates are at an all time low. Based on a purchaser\’s credit history, rates are available below five percent on a fifteen year fixed mortgage.
The majority of new homebuyers are coming directly from an apartment, and they normally have the intention of starting a family. The average income of the family will determine just what they can afford as far as the size of the home goes as well as the amenities included.
Over the last few years certain areas have been hit hard by the lowering of property value, and it ultimately means that first time homebuyers can make a down payment that will not bankrupt them. The price of homes has dropped significantly, and it is considerably lower than in the past five years.
If anyone remembers the eighties, then they may remember that interest rates of up to eighteen percent were quite common, and while this caused monetary problems for many, the number of homes being bought and financed did not drop. In fact, there were several thousand, and the American dream had become viable once again.
In those days a one thousand square foot home would sell at ten or even fifteen dollars per square foot, and by today\’s standards that isn\’t exactly expensive. What you have to understand however is that today\’s standards are a bit different than the standards of the past. With a wage of a dollar sixty-five per hour, these houses would have been unattainable to most individuals.
Everything is relative to the current financial situation. For one thing, houses were built for ten dollars per square foot, and gasoline was eighteen cents per hour. Prices were low, wages were low, and as always, the wages were increased over the years.
When the word suburbia became a common word, the returning service men and their wives began a population growth or \”baby boom\”, and that meant more housing and apartments. The government did their part with a financial lift known as the GI bill and government backed loans from the VA, or Veteran\’s Administration to help with home ownership.
These old homes, assuming that they are properly taken care of, can be worth sixty to ninety dollars per square foot due to inflation. Thought inflation has affected everything commerce related, the home is the most effected, and if you are planning to purchase a home, then it would be to your advantage to hire a decent Realtor.
Lance Mohr is a specialist in the Tampa real estate market. If you have any questions or are looking for hard working Realtor give me a call. For details on Tampa condos or Tampa Realtors please visit our website at http://www.Tampa2Enjoy.com.
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