Is it a Good Time to Buy a Home or Not?
This is a question on many potential buyer's minds lately. I'd like to take a stab at that and hopefully answer the question for the entire next 2 years as we approach the middle of 2014's second quarter. First of all, bad news sells, doesn't it? The media would always have us believe we're going to hell in a hand basket one way or the other.
Rest assured, cycles do just that; cycle. As sure as something goes up, it must come down, and when something hits bottom it has no where to go but up. There's a phrase among investors on Wall Street called "timing the market" which most think is a bad idea, (I'm inclined to agree) though some with more of a gambler's soul participate. This is also why some loose big, and other's enjoy small, steady wins over time.
What does that have to do with buying a home? Well, first, I wouldn't listen to hype or "anti-hype" about sales being up or down. If you're buying a home for the purpose of living in it all you need do is consider the present circumstances around you.
First of all, current rates are still hovering above but close to historically low rates. I remember them being upwards of 13 % when I lived on the West Coast years ago, so, anything around 4.5%-5.5% is awesome... do you really want to wait until it's 6, 7, or 8% and climbing, costing you many thousands more over the life of the loan? Secondly, there's the current house values to consider, and what are they doing .... going up. Gone are the days of deep discounts, you won't see the rock bottom prices of 2011 and 2012 again for many, many years. So yes, hesitation is a bad idea if you're in the real estate market for a primary residence.