Right now is still a GREAT time to buy and own U.S. real estate. This is especially true of houses.

I know that if you listen to the media there is a lot of noise out there about what’s going on in the housing market…prices increasing…no good deals…blah, blah, blah. To me it is all just noise. Let’s take a look at the facts.

1. Housing prices had their greatest bust in nearly 100 years and now have recovered and moving upward.
2. Lack of new construction has created a supply and demand imbalance.
3. Mortgage rates still at near all time lows…around 4%.

When you take the prices that real estate is at today and then combine it with the near record low mortgage rates, homes are still incredibly affordable.

Home prices are driven by supply and demand. When supply is low demand increases, and thus prices increase until there is more supply. At this point prices tend to settle down.

Since the market crash of 2008, builders across the country have been slow on new housing starts. This has created a supply and demand imbalance. This underbuilding for the past 7-8 years has caused a bit of a housing shortage.

Housing is one of our most basic needs next to food, water and clothing. We all need shelter. And since no market is perfectly efficient builders have been a bit squeamish to start building again until they saw an uptrend in the market.

Well, that uptrend is now. Take a look around. I’m sure in your city you are starting to see new construction again. This is something that we have seen very little of over the past 6+ years.

Of course it will take sometime, most likely a couple of years or more before the supply catches up with demand again. Couple that with historically low interest rates and we have a recipe for NOW being a great time to buy a house.

Many of you that subscribe to my newsletter know that I am a property guy. I have made my living as a professional real estate investor and coach for the past 15 years. Yet, I can’t state this strongly enough, NOW is STILL a great time to buy a house.

Housing will always be needed. Everyone needs a place to live. Right now we are in a supply and demand imbalance due to underbuilding and the real estate crash of 2008. Add low interest rates into the mix and NOW is a time to buy.

If you don’t already own your own home, I want to strongly encourage you to seek out buying your own home this year. If you already own the home you live in, then I want to encourage you to start building your rental portfolio.

Start small. Just add one property this year. You don’t have to go crazy. Stick to buying properties that are in working class neighborhoods (or better) that are close to where you live. Make sure that they truly cash flow from day one. This means positive cash flow after taking into account interest expense, taxes, insurance, maintenance and don’t forget vacancy.

Any property that you buy today that truly cash flows, will be one you will be glad you bought 5 – 10 years from now. In fact you will be looking at that property, its debt that will have been being paid down by your tenant, the appreciation and the consistent cash flow and say to yourself…”why didn’t I buy 10 of these!”

Don’t waste any time. Now is the time to ACT! Go buy and invest in a property today. Your future self will be grateful you did. Happy investing.

Andy