Wow what a ride!
While we have seen a decline in the amount of “awesome deals” coming to the Atlanta market, there are significant savings that can occur when buying real estate in 2015.
Consider this: A 30 year, $200,0000 loan financed at 3.75%, equates to roughly $133,000 of interest you will pay over the life of the loan. Staggering I know, but stay with me….If the same loan is financed at 5% the accumulated interest is nearly 187,000. DO THE MATH. That is $55,000 of saving. There are STILL opportunities to save BIG money in the real estate market. And folks… 5% interest rates are a realistic number. It is irrational to think rates will stay low forever and many economists are predicting a mortgage rate at or above 5% by the end of 2015.
There is also a large group of homeowners that had short sales and foreclosures during the down turn. After their required waiting period (3-7 years), they will be returning as homebuyers to our market. When this group hits the market, we will likely see another shortage of available homes and another increase of home values.
Real estate has always been a good long term investment with the right location, purchase price & loan terms and there are a lot of signs indicating that it still is a great time to buy. Are there still good deals hitting the market? Yes…you just have to find them! Price, terms and return are all factors in getting a good deal.