Is NOW the Right time to be "In the real estate market?" - Maybe

Oregon is in a Strong Buyer's Market.  NOW is the greatest buyer's market of our generation!  Don't Wait!  
Take Advantage of the Incredible Opportunity today!  

You can hear many of us in the real estate profession shouting from the mountain tops and, quite honestly we all believe it to be the case.  But is it REALLY?  I think the answer to that question is more based on the circumstances of the INDIVIDUAL than the market.  So, I submit the following 5 Point Review to decide if NOW is the right time for YOU to be in the real estate market:

 

1. Do you have the financial resources to buy a home now?  (Cash assets for a down payment, closing costs, reserves)
   1. Unless you are a qualified Veteran, or taking advantage of very specialized loan programs, you will need a minimum of 3.5% down payment (this may be going to 5% in the near future).  In addition, consider that closing costs may also be 3-5% of the purchase price.  Lastly, it is really not a smart decision to buy a home unless you have some cash reserves (over and above those already mentioned) to be able to make the mortgage payment for a few months.  Most lenders recommend 6-9 months of reserves on hand, although they may require less.
2. How solid is your Credit Score?
   1. Many loan programs and lenders have a minimum acceptable Credit Score to even qualify.  Further, the better your credit score, the better the interest rate that you can qualify for.  Lower interest rate makes a dramatic impact on  your monthly payment.
3. Have you met with a lender that you like and trust to get Pre-Approved for a loan?
   1. This is the FIRST step to home ownership and unless you know that you are qualified to buy, and in what general price range, it doesn’t do any good to go visit open houses or tour the town with a real estate agent.  Visit with a LOCAL lender that you like and trust and provide them with the documentation they need.  Once you know, you can be a powerful home shopper.
4. Does your list of “Wants” and “Needs” for a home have any special or unique requirements?
   1. There is amazing inventory on the market right now…and lots of it.  However, if you have specific needs (or wants), even with these high levels of inventory, your options may be limited.  Remember, whether or not it’s a Buyer’s or a Seller’s Market depends on supply and demand.  If there’s only one house out there like the one you want/need…the Seller is in the driver’s seat.
5. Are you planning on staying in this home for a minimum of 3-5 years?
   1. The Mid-Willamette Valley housing market is a function of the economy.  Recovery is on the horizon, but you should NOT count on levels of appreciation like we saw between 2001 and 2007…and even when the market does recover, it can take 3-5 years (or more) for you to see any effective appreciation in your property.  If you are only in it for the short term – now may NOT be the time to buy.

Only if you can answer "YES" to all 5 questions above are you really ready to take advantage of the market today.  If you can't - there are some positive steps to take to get ready because there may still be time!  The housing market in Oregon is still experiencing some challenges, and will be for the near future.  Keep track of the market statistics at my Facebook Fan Page for Real Estate Talk on 1580 AM KGAL