Real Estate Slowdown Restores Balance

Real Estate Slowdown   

Nationally, home price appreciation is slowing down from the rapid pace experienced by many markets over the past few years. Is this any time to be thinking about investing in a home? Of course it is — if you're buying it for a place to live, not as a speculative investment, and can afford to take the leap.  

In a growing number of local markets, buyers have more time to think about a home before they make a decision on whether to purchase it. Last year, that often wasn't the case.  

Even if you, as a home buyer, have the benefit of being able to haggle more than you could last year, still remember to look for a place that meets your needs and your budget. Do the calculations and lay the groundwork before your house hunt begins. 

It's easy to get caught up in the upward scooting of mortgage interest rates. But take the northward movement with a grain of salt.  If you're in it for the long haul — that is, buying a home with the intention to live in it for years — a home is still a decent investment.  

Consider this bit of information from the National Association of Realtors^®: Since record-keeping began in 1968, the national median home price has risen every year. In a balanced market, home values typically rise at the general rate of inflation plus 1 1/2 percentage points. That's to say nothing of the tax benefits that come with owning your own home.  

A look at the volatility of the stock market also proves the benefits of real estate as an investment.  The downside of real estate is better than the downside on just about anything else.