by Dylan Taft
on Friday, March 8th, 2013 at 9:55am.
Ulster County NY Homes | 5 Reasons to Buy Now
Last week, Taft Street Realty started presenting the 10 reasons why now is the best time to buy Hudson Valley real estate. We talked about how lending restrictions are gradually easing, and that although interest rates are close to historic lows right now, they may not be for long! We've got more great reasons why now may be an ideal time to buy, from the improving economy to the classic debate of buying vs. renting. So to complete our two-part series here are the last 5 reasons why now is the best time to buy Ulster County NY homes for sale!
Buying Is Better Than Renting
Renting vs. buying debates are nothing new. There are valid reasons why some should rent and not buy. I totally agree home ownership is not for everyone; we've seen what happens when anyone and everyone can get a loan. But in the current real estate environment it seems like buying is a really attractive option if you have the means to do so. If you are able to buy and are willing to stay put for at least 5 years it makes financial sense to stop renting and start house hunting! Why is owning better? There are many reasons but here are just a few. Rents are rising fast. Because of the recession and tighter lending standards, more and more people today are forced to rent and this causes monthly rents to skyrocket. When demand for rentals increase so goes the rents that are charged. It is now at the point where it's less expensive to own a Hudson Valley home than rent in many cases. Another reason buying beats renting is that you are free as a homeowner to make any changes to the house and property you see fit. Owning a home allows for certain tax deductions not afforded to those who rent. In addition, owning provides an opportunity, especially in this down buyer's market, to slowly (or quickly in some cases) build equity. And lastly, as many often say, why pay someone else's mortgage when you can pay your own?
Good Investment for the Future
Buy low, sell high. That's what most experts will tell you, no matter what the investment. Most would argue that today's market is probably the "low" that buyers should be buying into. Some may argue that we're already past the bottom here in the Hudson Valley real estate market. When you look at all the above reasons, it makes it easier to talk about this one. Sometimes buyers get too wrapped up in the deal they are getting and lose sight of the bigger picture. Of course getting the best deal possible should be every buyer's goal, but determining what a good deal looks like is sometimes hard to internalize. Many markets have corrected downward some 20-40% over the past 5-6 years but some buyers still think they can and should get more of a discount during the negotiations. Buyers must consider the future when buying today. Hard to do for some, I know, but knowing the potential for future value and long-term equity gain should be factored into the present day valuation of a home. As stated above in other reasons to buy, eventually sellers reach their limits and buyers simply can't beat down the price anymore. Then the question becomes, "how fast can I add equity going forward? For every dollar I put in after the purchase how many dollars in equity do I gain?" When you are shopping the bottom of an improving market don't be penny wise pound foolish when it comes to seeing the future. Don't pass up a good home, a good investment for the future, just because you can't get another 5k-10k off the price after inspections. You may very well be able to add 15k-20k in equity just by buying now (securing a good low rate) and riding the market back up over time. The right local trusted Ulster County real estate expert can help buyers navigate this tough and highly sensitive market.
Fewer Short Sales & Foreclosures
According to Realty Trac, 43% of all residential sales (in 2012? - Check w/ D) were of the foreclosure and short sale kind. But with all the recent good news for housing, and the continued optimism displayed by the stock markets, it seems as though 2013 might just be the year where we see fewer short sales and foreclosures in NY State. Buyers looking for Ulster County real estate for sale should keep this trend in mind. Sellers are slowly recovering lost ground and they're feeling better about the future outlook on their home equity. As supply dries up this spring, the direction of values will surely depend on how many new listings hit the market this spring and summer. With some arguing the bottom of the market was 6-9 months ago, now may be a good time to buy here in Ulster County if there is a home you have your eye on. More and more buyers are coming off the fence and the local market is really busy. Grabbing the best deal you can now might be better than fighting over a home this summer when everyone else is out house hunting. With fewer and fewer sort sales and foreclosures, investors and other hungry deal seekers will be competing with the average buyer and that typically ends up benefiting sellers more than anyone else.
Economic Conditions Improving
Today the DOW stock index made it back up to an all-time high. Economic conditions in many areas seem to be improving. Consumer spending is up and that is providing support to the nation's recovery. If things continue to improve around the country, real estate markets will subsequently benefit. Buyers in the market today should consider buying now or soon, especially if the right home presents itself. Taft Street Realty has boots on the ground and we're seeing a shrinking supply of homes for sale in Ulster County. And if the DOW stock market remains strong, I predict 2013 will be a year of increasing home values in the Hudson Valley, as many Manhattanites shop for bargains upstate and take advantage of the still-low interest rates. First time buyers and other lower price point buyers should consider getting serious (if they haven't already) because this time next year prices and interest rates could both very well be higher than today!
Shifting to Seller's Market?
Could we be heading into a seller's market in 2013? Probably not just yet but it could very well be the last year buyers can say "buyer's market" when negotiating. In fact, we're already seeing multiple offer scenarios and bidding wars popping up here and there and they're the first real signals that the market may be changing here locally in Ulster County. When sellers feel like they are gaining back equity and that the world isn't ending they are likely to be less flexible when an offer comes in. As more and more sellers decide to hold off on the sale of their home because they feel waiting a year or two could get them more money, supply levels go down and prices start to go up. The shift Taft Street sees is one where more and more buyers want to get into the market and fewer sellers are jumping in to sell. Some sellers do not need to sell anymore either because they got the job they had been searching for or their refinance finally got approved. Whatever the reason, sellers are slowly realizing that the worst is seemingly behind us and that in turn makes it that much more difficult to negotiate the price down. Now I'm not saying we're back to the good ol' days of 2005-2006 but what I am saying is that buyers should take the news seriously and not be penny-wise, pound-foolish when it comes to buying. Link up with a really good local Ulster County real estate expert, find a house you can be happy in, get the best deal you possibly can, and enjoy! Lock in that low interest rate and move forward. Once you start seeing "seller's market" in the news headlines you will have already missed the boat. The next 6-12 months is no doubt a great time to buy!
Still Need a Reason to Buy?
The best reason to buy real estate in the Hudson Valley is the Hudson Valley region itself! Home to some of the most beautiful parts of Upstate NY, the Hudson Valley and Ulster County in particular offers hiking, climbing, outdoor activities & sports, peace, quiet, tranquility, and much much more! See for yourself how beautiful life can be here with a local Ulster County real estate expert!