If you are moving why wait?

What is so bad with the housing market?  Nothing!

 Interest rates for fixed mortgages are historically low.  Inventory is high.  Sure we have seen the risky side of lending take a hit, but if you are a regular owner-occupant buyer things look pretty good on the buying front.

Now might be the best time for home buyers in years.  There is plenty to look at.  On the resale front you might actually have some negotiating room.  On the new construction front, builders are making deals.

If you are looking to move up to a larger home, things are good too.  I've had clients say they want to wait until next year to put their home on the market.   My comment is that if you are jumping rocks within the same pond, why wait.

 What does jumping rocks have to do with real estate?  Well if you are selling a home within the same market in which you are buying think about this:  If home prices rise in the spring - which they are likely to do - you might be able to sell your home for more, but you will also pay more for your next home.   In fact, if home prices rise by the same percentage, the extra money your new home cost will exceed the extra money you made on your old home by waiting.  So if the water rises in your pond it's going to rise around both rocks.

If the home you own sold this fall for $200,000 and the one you want to buy cost $300,000 and prices rise 3% by Spring, then you will sell your home for $206,000 in the Spring and buy your new home for $309,000.  By waiting you might have cost yourself $3,000.

That does over simplify things, but the point is that waiting isn't necessarily going to help you.  Fall/Winter is almost always a good time to buy.  Better interest rates, less competition from other buyers, and this year a abundant supply of homes for sale.

And if you don't own a home already, buy before the end of the year so you can start increasing your income tax deductions. 

Good luck and happy house hunting.