Whether you should be buying a home now, or whether you should be waiting is a very important question that most potential home owners ask themselves. If you're in the market to buy a home - is now a good time to buy or will houses continue to drop in price? No one can say for sure what the market's going to do - but a good way to gauge what the market's going to do is look at the housing market in the past. Will prices continue to drop through this year? Probably. What about 2008? I can only tell you my thoughts on this. I wish I had a crystal ball (don't we all - especially when the market dropped!!). I think we'll see the market stablize in 2008 and we won't see things going up until 2009 ... but this is only my observation and thoughts on this.
Now, back to the original question ... Here is the answer:
Unfortunately, there is no easy answer as to whether you should buy now, or wait in case home prices start falling. However, there are numerous articles discussing some of the reasons that makes home buying a great investment, regardless of the future market.
The bottom line: If you are worried that a sellers market will turn into a buyers market, then you need to look at what is happening in that market. There are two key indicators to consider. First, look at job growth - if jobs are growing, and migration into the state is growing, then demand for houses will grow. This increased demand will lead to increased house prices. Second, look at the supply of homes. If there are more homes on the market than buyers, then there is a supply surplus, which will have the effect of bringing house prices down. One easy way to determine what the market might do is to look at the offers, rebates, upgrades, etc. that builders are offering. If the extras are more generous than normal, then there is a good chance a sellers market is turning into a buyers market.
Although it is important to consider what is going to happen in the marketplace - it would not be prudent to make such a large investment without at least considering it - there are a number of good reasons why home buying can make good economical sense regardless of the housing market:
Homeowners build equity in their homes that can be used as collateral for a home equity loan, or as part of a retirement plan when you finally downgrade into a smaller home.
|
Built up home equity can also be used for putting money down toward your next home.
|
Prolonged home ownerships brings with it equity growth in the form of debt reduction and general inflation.
|
Even if the market starts declining, history tells us that this will only be short-lived, and the market will start increasing again.
|
By using your income to pay of your mortgage, your income is in effect working for you. The opposite is true with renting.
|
One of the biggest benefits to having a mortgage is that, in most cases, the interest portion of your mortgage payment is tax deductible, which can save you a lot of money every year. Homeownership can give you personal rewards ... pride in ownership ... a piece of the American Dream. |
Making the decision to invest in such a way is never going to be easy, but by looking sensibly at the market, and by really considering whether the advantages espoused above apply to your specific situation, you are able to make a more informed and reasoned decision!
Happy Buying ...
For more information on the home buying process, visit my website at http://www.ritagibbons.com/
The area's most knowledgeable real estate professional. It gives me great pleasure helping my clients reach their goals. Serving Prince William Stafford Spotsylvania Fauquier Culpeper Counties
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
