Should I buy now or wait?
It depends on the individual. My opinion is based on predictions and current market statistics.The issue with the market is that we have the highest inventory of levels ever. People have been scared to buy, waiting for the low point. People are waiting to buy, more homes come on the market, time to sell increases, and sellers get scared, and slash prices. Right now home prices are the lowest they have been in 4 years. We are now approaching market stability as buyers start to feel that the bottom is near, and sellers are becoming more realistic about their home's value. With the Federal Reserve lowering the interest rates, there's plenty of motivation for you as a buyer to jump in & purchase. Take advantage of the lower interest rates & find great buys on many properties.
This is a good time to buy if you plan to keep the home for at least 5 years. Real estate has always been a fantastic investment if you're in it for the long, not short term. If you are thinking of buying, there are homes out there with fabulous upgrades and ammenities, and they are selling at great prices! Although we may not be at the absolute bottom of housing prices, we are probably close. Once that bottom hits, the pent up demand of homes will show its force and inventory will start to clear out. In all the ups and downs in the market in the past few decades, never have the interest rates been this low in a time of correction.
Every analyst has an opinion. Only when you're well informed should you make a decision.
** As a buyer it costs you nothing to use my services as your Realtor. My fees are paid for by the seller of a property. You'll save yourself the cost of driving around seeking out for sale signs, or, looking at newspapers with ads for properties that may have already been sold. Work with a Realtor whom you feel comfortable with & meets your personal goals. If you feel like you're being pressured into purchasing a property you really don't want,or,if you feel like your current agent isn't listening to your needs,it's time to find another Realtor.**
If you will be buying consider the following:
Do you need to sell first?
There are a number of factors that will determine whether you will need to sell before you can buy. The amount of equity in your current home, your earnings to debt ratios, and the price range of your next home are just a few of the key points. If you find yourself in a position to buy first and sell later, you must be aware of how long it may take to sell the first one. Even in a strong market, past performance does not guarantee future results.
Get your home on the market and then balance out your free time. Half of your time should be spent making your current listing as good as it can be.The other half of your time should be spent researching communities and not necessarily any specific homes.General floorplans, construction materials, etc… should be the only points you focus on.
What is your price range and have you been pre-qualified?
Becoming pre-approved for a loan is important. Not only important for yourself but critical to the sellers of a home that you wish to buy. Keep in mind there is a difference between becoming pre-qualified and pre-approved. Pre-qualification is a basic look at your income in relationship to your monthly debts.This pre-qualification process is quick and easy and will give you an idea of what price range you can afford. Becoming pre-approved is a much more lengthy process where your lender will look at your full credit history as well as your income to debt ratios. During this step, your lender will pull your credit score so it is important that you are working with a lender that you plan to utilize throughout the entire purchase process. I know of several reputable lenders I can refer you to, if you're not already working with one.
Generally, clients learn about their price range and then only look within those parameters. I always advise buyers, esp. during slow market times, to look slightly above the top of their range. Most sellers expect to reduce their list price either due to an incoming offer or due to no activity on the home.
How much does the home size matter?
Try to accurately determine how large of a home you need. The most important areas are the number of bedrooms and the amount of free space. Free space would be a den, an office area, patio etc.. Most people just look for a 3BD/2BA home. This may cover your sleeping arrangements, but what happens when you want an area to relax in, create an office or a workout area, etc.
Square footages are important but should not be the final factor. A 2,000 sq foot traditional home will feel very different than a 2,000 sq ft contemporary. Keep your mind open and explore them all. What may not work well for someone else may be just what you have been looking for. After visiting a few homes, you will quickly narrow down what you want.
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