Is Now The Time?

At a holiday get together last week, the topic turned to Real Estate as it so  often does.  There was a general feeling of the unknown, surprise and a touch of uncertainty as to what the market was doing.  Several neighborhood homes had sold quickly before the holidays, while a number of others just sat there as they have all year.  What did I think was happening?  Has the market bounced back?  Did we miss the best time to buy?  Should we buy, won't it just get worse this year?

Hard questions and my crystal ball isn't quite that clear to offer a definitive answer.  However, think about this if you are on the buying fence of now or later.  One of the couples at the gathering was much younger then this old man and very concerned of timing their purchase just right.  "Is now the time to buy?", they asked.  "We don't want to loose value next year?", they added.

I told them what I offer to you.  Real Estate is a long term purchase.  It is not possible to predict accurately where the market will be next year.  Can we get close with the available statistics; of course but can I tell you your value won't go down in the next six months, absolutely not.  But here is the question to ask yourself; What would you like your mortgage payment to be five years from now?  How about ten; or even fifteen years from now?

I shared with them the story of my wife and I buying our home sixteen years ago for @34% of its current value.  We could not buy that house, even in today's "down" market, for anywhere near what our monthly cost is currently.  Had we waited two years and bought it 14 years ago, our purchase price would have been around 10% greater than it was.  Interestingly enough, at the time our first mortgage had an interest rate of @9% and we where happy to get anything below 10%.

What would you like your housing budget to be in five years?  Know is the time to buy.  Rates are at historic lows and there is available inventory to choose from.  Have questions? Call me, I can help put the market into perspectives and we can tailor the house to fit your budget.