Experts: Smart Time to Buy a Home

Real Estate Agent with REMAX Champions

Donald Trump on Newsmax

Donald Trump had very positive things to say about real estate’s buyers market.

It’s my belief that now is a great time to buy a home. It has nothing to do with the fact that I am a Realtor®. It has everything to do with the today’s financial status.

Experts are in agreement. Donald Trump (who’s considering a Presidential run, by the way) said:

“I can’t guarantee it, but I’m pretty sure this is right now a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to that interview with Donald Trump,’ ” [link]

Louisville Homes Blog quoted real estate investor, John Paulson, back in September saying:

“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.” [link]

Real Estate Market Forces

So if you don’t want to make a decision based on an expert’s opinions, what if I told you the market conditions are also telling buyers that it’s a smart time to buy?

When I wrote, Is It a Good Time to Buy Louisville Real Estate? interest rates were at historical lows, inventory was close to record highs and home prices had dropped 2.5% in two years. Since then, interest rates have been inching up, inventory has remained roughly the same and home prices have dropped just a bit. All three indicators still very favorable for buyers.

KCM Blog, one of my favorite real estate blogs in the country, wrote a piece yesterday that covers three other important market conditions: 1) economy, 2) unemployment, and 3) real estate’s performance as an investment.

Economic Indicators Show Real Estate Is a Good Investment

I won’t copy their charts and quotes to paste them here but you should read their short post. To sum up:

  1. Economy is improving
  2. Unemployment, which had been increasing, has leveled off
  3. As an investment, real estate tops Dow, S&P and Nasdaq over the past 10 years

So if you’re waiting for something to change before you buy your next home, what would that be?

Comments (2)

Randy Benefield
Trademark Property Services & Real Estate Inc., CalBRE, 01976861, 01442405 - Petaluma, CA

It is a great time. In fact, if a buyer wants to buy a home to live in long term, it is always a good time to buy. It just depends on the buyer's goals. It is good to hear the experts confirming a swing in the market for the better.

Feb 21, 2011 05:15 AM
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Excellent post/ left out the worry over currency instability and also a searching for that "safe haven".  

Feb 21, 2011 05:46 AM