It is NOT a Good Time To Buy

By
Real Estate Agent with William Raveis Real Estate

IT’S A GREAT TIME TO BUY – OHHHHMMMMM

IT’S A GREAT TIME TO BUY— OHHHHMMMMM

To quote one my heroes, Simon Cowell, “I don’t mean to be rude but..” SHUT UP ALREADY!

  • Yes prices are low!
  • Yes Interesting Rates are historically low!
  • Yes there’s a ton of housing inventory!

So let me qualify my opening about why everyone should not be jumping on the bandwagon and grabbing up some of the low-priced inventory with the low-interest rates.

It goes back to something that has been mercilessly pounded into our collective consciousness over the last 50 years.

 

Real Estate Is A Great Investment!

For many years, this was true. In fact if you search through my blog archives you’ll find that I have taken my turn at chanting the mantra. If I were a politician, I might be called a flip flopper.

Right now – it’s NOT a great investment. Sure we’d all hope that the RE Market is going to “cycle back to normalcy” tomorrow – or next month, or next year. Another Cowelism: “If I’m being honest..” there really aren’t any indicators that home prices are going to “bounce back” anytime soon.

Of course no one really knows exactly what the future brings and I’m by no means an economist but I continually read just about everything that’s out there on this subject and nothing has convinced me that you can buy a house now and watch your investment grow.

So, if that’s the case, you might ask, why did I just spend several hundred dollars and renew my Realtor’s License?

Fact is, there are people who should and will be buying homes and with the market as complex and dynamic as it is right now, those people need a guide like me who knows the ins and the outs so they can make it all the way from their current home to the next as gracefully and smoothly as possible.

 

So who is it that should be buying?

Glad you asked.

There is only one valid reason to be buying a home right now – if you are looking for a new place to live and plan on staying there for some time. For those people it’s a great time to buy for all the reasons above (low price, low interest tons of inventory).

So what I’m suggesting is this: Be honest with yourself. If you need a new place to live in Connecticut – give me shout and I WILL help you find it. If you are thinking that you should buy a house because conventional wisdom has been drilled and drilled that it’s a good investment, you may want consider buying gold.

It certainly IS a Buyer’s Market. That means that there are more sellers than there are buyers – it’s just supply and demand. It doesn’t mean that everyone should be buying just to buy. If you need a house, you can get a great value – a REALLY great value – but think about the house as place to live, not as a way to make money.

Right now in Northern Fairfield County, CT there are more than 2000 Single Family Homes and Condominiums listed for sale. They range in price from the low $100,000′s to more than $8,000,000. So there are a lot of options. If you have a valid reason to purchase one, I’d be excited and delighted to help you sort it all out.

Comments (7)

Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

The home you live in has never been a good / great way to make money (I assume that's your connotation of "investment").  Home prices go up and down, but, unless you are going to move under a bridge or are dead, prices are a bit irrelevant, aren't they?  Sell a house, buy a house.  Sell when the market is high / low, and you have to buy at the same time.  The only investment value in your residence is the value of a better lifestyle for you and your family.  That is what always makes owning your own home a great investment, just not a way to make money.

 

May 29, 2010 06:00 AM
Rick Schwartz
William Raveis Real Estate - Danbury, CT

I don't disgaree with you Mike, but "People" have been saying, for as long as I can remember, (and I'm getting pretty old)  - long before I got into this business - that buying a home is a good way to make money.  My parents told me that when I first got married in 1975.  At that time, in my market - it did seem to pay off.  I bought a condo for $20K sold it 2 years later for $35K.  Bought a house for $50 something. Sold it in 5 years for for $125K.

On the surface it sounds logical and there are lots of folks who still think that way. The fallacy, as you correctly point out, is that the only place to go when you sell is into something that also reflects the current market.

I guess what I'm trying to say is that even the perception of making money on a home is gone  - or should be gone from current thinking.  The only reason to buy a house should be if you think that living in that house will improve the quality of life for you and your family.

May 29, 2010 06:12 AM
Bob Willis
Berkshire Hathaway HomeServices California Properties - Orange, CA
Orange County & L.A. County Real Estate Agent

Great blog post, Rick.  It makes sense to buy a home to live in it and get the pleasure people get from having their own home.

May 29, 2010 09:23 AM
Rick Schwartz
William Raveis Real Estate - Danbury, CT

Thanks Bob -  pleasure is often underrated.

May 29, 2010 09:33 AM
Leanna Putman
Shanna Selections, LLC - Enfield, CT

Rick, Great post.  (Catchy title, too.)

I'd be interested to hear your thoughts on the topic I have just started discussing in my blog "Creating Home."  (I"m brand-new to this blogging thing).

Nice to see a neighbor in here (I'm up in Enfield, CT)!

Have a great day, Rick.

May 30, 2010 04:04 AM
Rick Schwartz
William Raveis Real Estate - Danbury, CT

Catchy titles are my thing. Not everyone likes my content though - I'm pretty blunt.

So you're in the part of CT that's in Canada I see.  :)   If you ever travel down this way, give me a shout. I love to talk to other CT Realtors over coffee or lunch.

May 30, 2010 11:17 AM
Leanna Putman
Shanna Selections, LLC - Enfield, CT

Yah, the snow is still melting up here!  :)

I am not a Realtor, but I work with Realtors, helping them get their vacant properties sold faster - and I both drink coffee and eat lunch, so I will be sure to give you a ring next time I fly south a little!

Have a great day, Rick.  Talk with you soon.

Jun 01, 2010 03:00 AM

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