When clients asks, "Is this a good time to buy now."

I get asked by my clients if this is a good time to buy a home? Or, "If this is the bottom" To be honest, nobody knows when the bottom will be. You can look at all the trends, graphs, and so called expert opinions, but are these the same experts who didn't advise the public this is a time to sell? Everyone has their own opinion as to when to buy and sell. But when my client asks, "Is this a good time to buy" I reply by saying, "Do you need a home?" Don't buy just because the price is low, buy because you NEED a home, you need more space, or you have a career change. Ask if I buy a home now, how stable is my job? Do I have enough savings for at least 12 months to make the mortgage payment incase I lose my job. I still see FHA loan approvals getting approved at 50% debt to income ratios. This is scary, it gives the borrower false hope by approving the loan, it makes the client think the bank approved me so therefore I can afford the home. Even if your client gets approved for a $400,000 loan, maybe they should buy a $300,000 home? Prices are still cheap now not to overextend, and when the housing market does get moving again, they will be sitting pretty in a home they can afford.

Sameer Punjani