SHOW ME THE MONEY AND I WILL SHOW YOU THE HOME
Deciding whether it's the right time to buy - You can't "time" the housing market.
Yes it is the right time to buy. That is if you can. This is the second in a series of how to purchase a home. The market is the least important factor you should consider when deciding whether and when to buy a home. Everyone knows that affordability is at an all-time high. Home prices are low and so are interest rates. But trying to time the market is a fool's game. Many who get caught up in the game of trying to make sure they buy at the absolute bottom will end up losing out on very, very favorable conditions.
The most important considerations when deciding whether and when you should buy a home are personal, not market driven. Do you have the cash and can you qualify for a mortgage? See my other blogs for help with those questions. In the Lansdale area, which hasn't been affected like some areas of the country by the foreclosure crisis, it makes sense to purchase if it's going to be sustainable and work for you for at least the next 4-5 years. In areas of the country that have been hard hit by the recession and foreclosure, you should be thinking 7 - 10 years.
A smart buyer decides to buy when it makes sense for:
- *their life plans - they will be in the same town and are comfortable making a commitment to live in that area
- *their family plans - getting married, having children, or empty their nest, and the implications these plans have on their space needs
- *their career plans - income and job security, working in the same area for the foreseeable future
* their financial plans - foreseeable changes in income and expenses, kids going to college. etc.
These are all things to consider when deciding to make a purchase. Not - has the housing market hit rock bottom.
Also consider this, mortgage rates are changing rapidly and your affordability can be short-lived. See what happens for every 1 percent rise in mortgage rates;
$300,000 house with 20% down, borrowing at 4.5% - $1216 monthly payment of mortgage and interest. That same house at $285,000 price drop, 20% down, at a 5.5% rate is $1295 per month. That is a $79 monthly increase and $28,440 in extra payments over the life of the loan. 
That is why it's foolish to "time" the housing market.
I am a Licensed Real Estate Professional specializing in the Lansdale Montgomery County PA area. Buyers choose me to represent them in their search for Lansdale Montgomery County PA homes. They use my customized MLS search tool that allows you to search like an agent. Sellers choose me for the sale of their Lansdale Montgomery County PA homes. Contact me to see how I may be able to be of assistance to you in your next real estate transaction.
Living in Lansdale, Knowing Lansdale, Selling Lansdale
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