I try to respond to questions that are sent in by email and in the comments here quickly, and in some cases i keep the questions to write posts that may apply to more consumers.
Today Mortgage Question submitted by a Chesterton Indiana home shopper -
Question: I have been watching rates bounce up and down near 5% for the last six months, and whenever I talk to my REALTOR they suggest home prices are at the bottom ... so it's a no brainer that things can't get any cheaper. But ... does this automatically mean I should buy? Are there other considerations before we run out and make an offer on a home?
Answer: You have summed up the market situation quite well, there is no better time to buy a home than now. And you are correct as well that there are unique considerations for each individual buyer. Some leading indicators:
- Do you feel your job or jobs are stable going forward? I would be remiss to suggest to someone who is worried they may have a period of unemployment ahead go out a buy a home.
- If you are renting, this is an easier bit of advice since your rent can only go up and you are getting "ZERO" benefit on taxes ... but if you own your home the possible resale of your home becomes a much bigger issue. Have you consulted a real estate professional about the possibility and viability of selling your home for a solid value? They know the villages and communities, they should know if your home is poised to sell or may take some time.
Beyond these two biggies, I can tell you that this is a terrific time to buy a home. I could even suggest, at the risk of sounding partially crazy after the 2007 implosion of the market, that this could be the single best time EVER to build a new home. Trust me, I know home building.