Homes for sale in Encinitas are still a good investment and, if you can get a mortgage loan, homes for sale in Encinitas can be a very good investment due to prices, supply, and mortgage rates.
A recent article in USA Today discusses why buying a home is a smart investment. When compared to purchasing a stock or bond the housing cycle can seem long and arduous; getting pre-approval for the mortgage or submitting to a credit check, which can be intrusive, having the home inspected, and on and on.
However, there are major benefits to going through this process:
- Prices – Home prices are still very cheap. In June of this year the median home price was up from $154,600 to $190,100 but that number is still low compared to a high of $230,900 seen in July of 2006.
- Supply – Supply is currently back closer to normal levels and excess supply of houses on the market is expected to dry up by the end of 2013 according to Ned Davis Research. This means that people will begin building new houses in greater numbers, which will shore up unemployment and increase the economy.
- Rates – Mortgage rates are still hovering around the all-time low of 3.49% seen in July, but they are steadily increasing. Your interest rate on a 30-year mortgage could be less than the rate of inflation somewhere down the line and that would make for a very beneficial scenario for you.