Should I Buy a Home Now?

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!
    Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!
    While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.
    Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

  • April 18 2013 - Ozark
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Answers (5)

Tell those asking that the ONLY way to see the bottom is looking BACK at it and that means they missed it.
  • April 18 2013
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Profile picture for brianpakulla
Home prices are rising in nearly every metro in the USA and rates are near all time lows.  So, yes NOW is a great time to buy.  Certainly no one can predict the future, but if you are buying real estate for the long term, these market conditions are very favorable to buyers.  
  • April 18 2013
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I would say don't wait too long.  I'm seeing houses listed and sold in less than 48 hours; in fact some homes are getting offers from buyers which have not even viewed the homes.
  • April 18 2013
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Never, ever make a decision based on an emotion....those feelings are ever changing.  Instead, let the facts do the work for you. The way to truly know if you should buy now is by first doing a financial feasibility study.  Ask yourself if you can you afford to buy what you want at this time.  Once you go to your bank or financial institution and get the bottom line of how you will pay for your real estate purchase, then you have the knowledge to make a prudent decision. You do not want buyers remorse. 
  • April 18 2013
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Profile picture for user61384708
Now is a bad time to buy a home unless it's in a very distress area like Detroit. Why do I say this because if you look at 2005-2007 the same advice what coming from these so called experts and when the crashed happened they became turtles and stuck their necks in. Buyers buying without seeing the home, multiple offers, banks holding millions in shadow inventory, rates rising back to normal or above levels later this year, foreclosure notices rising again, McJobs creation doesn't bode well for housing affordability and when the herd is shouting buy then you another bubble that WILL pop only next time cash investors will be gone for generations just like the last depression. There has been no recovery in the economy the Fed has created artificial wealth only to evaporate when they have all the sheep in the cage. Go back and research how Time magazine and other news outlets we're saying buy just 18 months before the crash. Don't listen to Realitors who don't have a clue about making money in housing only to B.S. others into buying so they can make a profit. Wait until the Dow hits around 4000 within 24 months or less then with your savings you will have your choice of homes with no competition. Lastly why do you think hedge funds are now exiting the real estate markets???? Follow the smart money and you will find the time to buy.
  • June 23 2013
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