To Buy Or Not To Buy?

With the rapid price drop and low interest rate, is this the time to purchase a home? Here is a list of 4 types of buyers who shall not consider buying now.

1. Older couple downsizing. It is financially more favorable to do downsizing when the market is going up.

2. Buyers with unstable future earning. Those buyers shall wait until their financial situation stabilized.

3. Short term investors who want profit in 1 to 2 years.

4. Buyers with high debts and poor credit. It is best for those buyers to focus on reducing debts and improving credit first.

On the other hand, buyers with stable jobs, credit score over 680 and at least 10% down payment shall consider buying. Here's why:

1. Large selection of inventory.

2. Low interest rate.

3. Tax advantages.

If buyers wait until the market turn around to make a purchase, the number of selection and interest rate may not still be favorable.

Also, you can not tell whether the buyer is making money or losing money until the house is sold in the future. As long as the buyer is living in the house long term and enjoying the ownership, chance of making money long term in real estate is still in buyer's favor.