Wait or Buy?

February 14, 2009

I wanted to share these stories because they address multiple points of the housing market with great points in all the stories.

 

In the first story, “Five reasons to buy this year”, it discusses the affordability being the best since the index was created in 1970.  I completely support this.  I feel that we are seeing an affordability that we may never see in our life time again.

 

It also quotes, Duane Andrews CEO of Clear Capital, “You buy for a quality of life…don’t buy on speculation”.   He goes on to say, “I wouldn’t buy a home expecting the market to rebound quickly in the next 10 years.”  We have been telling people for some time that we are back in a traditional real estate market whereas you will be planning on living in your home for at least the next 5 -7 years.  So, buy something that you will truly be happy in, and enjoy in the years to come, not just a home that has a great price tag on it.  There is truly a difference in a great price and a great value.

 

To review the complete story and related stories see link below:

http://www.marketwatch.com/news/story/story.aspx?guid={01DA1B93-91D1-49E4-A1B1-0ACA9CE66FF4}

 

In the next story, “Five reasons not to buy a home this year”.  It refers to the concern over prices continuing to fall this year.  They might or will and in some markets there may still be more decline into late ’09 or early ’10.  However, anyone that actually thinks that they are going to time the bottom of this market is fooling themselves.  Plus, with only an increase of .5 percent in interest wiping out any savings a 10% decrease in value would realize.  I don’t see much value in fence sitting.  Especially, in the least hit areas like the Northwest, a home buyer will have more to loose than gain to wait out this market. 

 

It is quite possible that once we find the trough in this market, it probably isn’t going to be appreciating at a rapid pace.  However, rates can’t stay at the level they are for very long due to the threats of inflation.  So, even if we see modest gains in values, rates will go up and the affordability that we are realizing today will be gone.

 

I think these are all good points to consider in buying a home in the current market.  I think you need to look at all aspects of your own financial situation. Does your budget have the cushion to sustain surprises?  Do you feel comfortable with your job situation?  Any prudent competent person would consider these. 

 

This story quotes a renter that decided to rent because he wasn’t planning on staying in one place for more than 5 years. We discuss this with prospective home owners in our sales office on a regular basis.  Real estate is back to a long term traditional investment.

 

To review the complete story and related stories see link below:

http://www.marketwatch.com/news/story/story.aspx?guid={22185FBD-7F44-4A49-A604-A29D4225E122}

 

 All good points however, all come to the same conclusion, if you are considering buying a home that you will be in for longer than 5 years that is within your means, it is the time to buy.  I hope you will take the time to read these stories and come to your own conclusion.

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One Response to “Wait or Buy?”


  1. You make a lot of good points. I definitely think now is a good time to buy, and real estate will be back stronger than ever in the next year or two.


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