The media isn't always the best resource . . .
You've heard this time and time again yet just last week there was another example of poor reporting.
First, an admission - I came in on the tail end of a news segment so I didn't catch the entire conversation nor do I have the financial consultants name. Also, I know that this was one person's opinion and that this isn't an indictment of all news shows. However, when the anchor asked him if now was the time to purchase a home, he answered unequivocally "No". I find that not only incomprehensible but also grossly misleading. Purchasing a home is not the right decision for some however there are several extremely good reasons why it still makes sense for many. The right answer should have been "it depends" because there isn't one right answer for everyone.
It depends on several factors including a family's (or an individual's) financial position (credit score, income, other investments, etc.), current living situation (renting or already own) and anticipated length of ownership. It would be difficult to imagine a better time to borrow money to purchase a home with interest rates hovering just under 4% for 30 year loans. Home prices are near (or at) the bottom of the market. Lastly home ownership should represent more than just an investment (we forgot about that in the early 2000;s). It represents a safe place to live and be a part of a community.
Thankfully, Americans don't agree with this financial consultant. In Fannie Mae's 2011 3rd Qtr. National Housing Survey, they found that 55% of the population believes that home ownership has more potential as an investment than any other traditional investment. More importantly, 68% believe now is the best time to buy a home.
Please don't assume that home ownership isn't right for you or that you won't be able to qualify. Call to find out if this is the right decision for you.