Is this the right time to Buy a Home?
Could this be a good time to by a house? It may be the best time in years. For some reason, home seekers seem most interested when prices are high. But just as we all like to see a “20% off” sale on our favorite consumer items or groceries, we should be buying a house when they are selling cheap.
Of course, if you already have a home you might hesitate to move up to a larger one now. Given the number of people in over their heads on their mortgages, it makes sense to be cautious. But if you are hesitating because you don’t want to sell your current home at these lower prices, think again.
So Why may this be the best time to buy real estate?
If you have the means, you might want to buy the a home now without selling your existing house. You can rent out your current house and wait for prices to go back up and get more for it. But if you need to sell to buy, now is the time.
It’s been a long time since there has been such a steep decline in the prices of homes. It’s what every other industry would call a sale, but we call it a correction in the real estate industry. Of course there is no guarantee that we have reached the bottom on prices, but at the very least you know you are paying less than you would have a couple years ago, which is always a good thing.
What if you’re a first time home buyer? Well it makes sense to buy something when it’s on sale. Interest rates are still low (as of late 2008) . And although it is tougher to get financing now, this isn’t all bad. You can feel safer knowing that banks and other lenders are no longer allowing borrowers to get mortgages they can’t afford.
Houses on sale, interest rates still near all-time lows, and lenders no longer pushing mortgages that get you into trouble – this may be the best time to buy a house.
