Working in an escrow office, we hear people wonder aloud about the wisdom of entering the housing market. After all, supply is short, and demand is high. In fact, rarely has Southern California seen a hotter housing market. Nevertheless, we feel confident assuring home buyers that now is the perfect time to purchase a house or condo in the San Gabriel Valley, Inland Empire, or LA Basin or Orange County.
Even with slight bumps in interest rates recently, most are still priced far lower than they once were. In fact, it was only about a decade ago that one would do well to secure a single-digit interest rate on a home loan! Of course, the only constant in everyone’s life is change. So, we can’t assure this market will last. But a certain percentage of homes will be available in virtually every market.
Interests Rates Remain at Record Lows
In the year 2000, the average home loan rate was 7 percent. That’s much higher than today’s average, even with recent increases. And as far as inventory goes, things change. Life moves. People either outgrow large homes, decide to downsize, or need to relocate. If you retain a great real estate agent to help the search, and a reputable escrow company to manage the funds, 2021 remains a great time to buy a home. In the final analysis, home ownership is still a smart move, despite hype to the contrary.
Benefits of Home Ownership
- Fewer rentals and excess competition
- Limited rental inventory persists across the country
- Dozens of people routinely show up to tour available rental properties.
- Competitive bidding resembles the once congested home offer process.
- If you must show up early and produce proof of substantial income and recovered FICO scores, why not apply that effort to home purchase instead of a lease?
- Tax advantages
- Freedom to paint or otherwise customize your own home. If you rent, you won’t enjoy creative freedom.
- While rents will continue to rise, if you lock in a mortgage payment today, your payment could remain steady for the next 30 years.
Despite misgivings, most Americans still believe one of the easiest ways to build wealth is to invest in property. And the smartest place to put those dollars is to put a roof over your head.
About Eastland Escrows in Covina, California
If you’re considering buying or selling a home, please consider calling Eastland Escrows, Inc. to manage the escrow account. We are an independent escrow company based in Covina, CA serving Southern California since 1973. With more than 100 years of combined experience, we pride ourselves in working like a dog on behalf of all our clients! We have closed thousands of escrow transactions from real estate sales and refinances to business sales.