Great Time to Buy Part 2

Top 3 Reasons Why You Should Buy Real Estate Today

1) Increased Affordability

The average price per square foot of a Manhattan apartment fell by more than 15% in the third quarter of 2009, compared to the same period last year. The average price per square foot is now hovering slightly below $1,000 per square foot, down from $1,196 per square foot a year ago. Buyers are taking advantage of the lower prices, with sales activity increased 45% from the second to the third quarter. An increasing number of buyers are feeling more confident to take advantage of the lower prices.

2) Interest Rates Remain at Record Lows

The economy is growing slowly and there appears to be little or no inflation in sight. This is keeping mortgage rates at historically low levels. Furthermore, rates are not expected to rise anytime soon. 

3) Stock Market is Showing Signs of Strengthening

The stock market has increased by roughly 50% since bottoming out around 6500 in early March. The Dow Jones Industrial Average is now approaching 10,000, a very welcome sign. Moreover, there remains room for the market to advance despite its already huge climb.  Stocks are still down from their peak two years ago.   Since the real estate market has historically lagged the stock market, signs of strengthening may signal prices increases in 2010.