OK, I had another client question when they should buy their new home so I thought it would be a good time to solicit opinions.  They do not have to sell a home so that puts them in a great position to purchase now while the inventory is high and prices low.

Their question was "Should we buy now or wait for the prices to bottom out?"  It's a very good question and I can understand their concern. My question for them (and others) was "How will we know when the prices bottom out?"  In my 16 years in real estate I have never heard a good answer to this question.

So how will we know when it's the bottom??? When the prices start going up again!  Now imagine trying to time this change and get it right.

Two things jump out right away about waiting:

1. Prices are going up so you lost the perfect time. Example - a home is priced $200,000 today, plenty of inventory to choose from and a relaxed approach to buying vs. 4 months from now - $200,000 (went down to 185,00 and then back up to $200,000 during this time), less homes to choose from and in a hurry to beat multiple offers.
2. Interest rates typically follow the market. As the market starts to rebound interest rates will begin to climb up. You may end up paying a monthly payment more then if you bought now.

If anyone has an answer to how we know when we've hit the bottom please let me know. If you're thinking about waiting for the bottom, ask yourself if this is really that important or should you make that purchase now and enjoy your new home. If you have any real estate questions please don't hesitate to email or call me!