Looking back at the numbers last month have given us a glimpse of things to come. If you look at closings versus inventory - you will see that lacking Santa Clarita inventory is holding most of the buyers back. In fact, we have been watching as more and more buyers are heading into the local real estate market wanting to buy homes, condo's and town-homes.
Click here to view the median pricing graphs for the Santa Clarita Valley cities - see for yourselves...
There are three reasons for this scenario. First - there is the Tax Deduction. The interest that is being paid on the mortgage is tax deductible. Furthermore, during the first few years of a person's 30 year fixed mortgage - the majority of their payment is going to come back to them, because they are able to deduct it on their taxes. Make sure you speak with your tax professional regarding the "how much" and the "right way to deduct mortgage interest".
Another reason why buying real estate is the "thing to do" has to do with appreciation. There are some that bought at the last "height of the market". They are not happy campers - however, there are those that are able to buy at the bottom of a real estate cycle, where the prices of their properties can only go up. Those are very happy campers. Over the long run - when looking back at real estate numbers - real estate is one of the most secure investments "overall". For the long haul investor - whether you are going to live there or are going to rent out the property - looking at it as an investment - either way, is best. Ask your real estate professional, when looking at homes, to keep speaking with you as if you are an investor. Have them talk about re-sale, appreciation, and future local growth. BTW - you are always going to need a place to live - Yes?
Can owning a home better you socially? I'm not saying that you are going to instantly become popular - but it won't hurt :) Studies have shown that homeowners are more "satisfied" than those that are renting. It gives the owner a chance to really dig into the neighborhood. Everyone (the owners), have a vested interest in making sure their neighborhood shines and attracts the best in neighbors.
Is now the time to buy a home? Depends on you. I am not a fan of answering that question when asked. Why? - Because I have a vested interest in my response. Look at the interest rates, look at your financial position, and if you are renting - you need to use the "rent versus own" rental calculator.