Should I wait or should I buy a home now?

By
Real Estate Broker/Owner with Independent Real Estate Broker DRE#00972295

All my friends are tell me to wait until home prices bottom and then buy.  Should I wait or should I buy now?  I am sure your friends have your best interest at heart and they may not know how real estate works.

 

Real estate prices go up and down, just like any other business cycle....if someone purchased a home at the wrong time or wrong place and wrong loan (maybe during a California real estate bubble during the early 90’s and 2005 and 2008 with a toxic loan), then they may have a bad taste in their mouths for real estate.  
 

Maybe some of your friends purchased at the height of the real estate bubble with a toxic loan and their homes have lost value and their loan has or is about to explode, they may not be your best real estate advisors.

You need to purchase after the bubble pops not while it’s being inflated. I work the Downey CA area and I believe that Downey has bottomed and prices will be low for the next few years with a little increases here and there, but they will come back up again.

 

Will home prices ever come back up to the 2006/2007 bubble prices?  No one knows at what rate homes will appreciate but prices have no where to go but up, but that’s just the real estate cycle.

The danger of waiting is your interest rate can go up and so can the cost of getting a loan: loan points, title insurance, homeowner insurance, private mortgage insurance, escrow fees. 

Also remember, buying a house is more than just a financial decision, it’s a place where you are going to build a home for your family. If you find that right place at the right price, what does it matter if prices fluctuate up or down, if you are planning on staying for at least 5 to 7 years, you’ll be ok. 

If you are buying to flip and trying to make a quick profit, then I say you might be treading in dangerous waters more so in certain areas like Downey CA were home prices shot up too high and to fast during the bubble years and are now in a correcting stage, which is good news for those who want to buy a home in Downey CA to raise their family.  If you are planning on flipping for a profit, I wouldn’t be able to help you but if you want to buy a house to make it a “home,” then I can most certainly help you.   

Please call me discuss how I can help you find the right home for you and your family.

Posted by

Aida Pinto (562) 884-6196
Los Angeles County
Real Estate Broker



The Real Estate Maven : https://www.facebook.com/aRealEstateMaven?ref=hl

 

Short Sale, Probate and standard real estate expert.

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Rainmaker
180,995
Paul Campbell Realtor Lexington
Rector Hayden, Lexington, Ky - Lexington, KY
Kentucky Homes for Sale

An excellent post Aida,

 

Warren Buffet's advice "to be greedy while others are fearful" has never been more appropriate than now for those who are sitting on the fence or expecting to buy at the bottom.  I agree, now is the bottom in most communities.  When, you can buy cheaper than you can rent how much lower will prices go. 

Thanks, Paul

Oct 21, 2011 02:32 PM #1
Rainmaker
887,591
J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY
Broker-Owner

Good stuff Aida. They don't put the Goodyear blimp out there to announce when the market has officially bottomed. 

Oct 21, 2011 02:32 PM #2
Rainmaker
151,854
Aida Pinto
Independent Real Estate Broker - Los Angeles, CA
Real Estate Broker (562) 884-6196

Thank you, Paul and J...for your comment....I do hope that buyers get the message.

Oct 21, 2011 02:45 PM #3
Rainmaker
186,410
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

It is definitely a great market to buy and with interest rates they way they are, why wait.    Great Post.

Oct 22, 2011 01:32 AM #4
Rainmaker
104,374
Kathy Dowd
MVP Realty, 239 220 4133 - Cape Coral, FL
Consider it SOLD

If we only had a Crystal ball...it would help us do our job better. No one knows when is the best time too purchase... I think every clients situation is different. But if they are waiting for the bottom to fall out to buy, they might have just miss it!

Oct 22, 2011 05:37 PM #5
Rainmaker
151,854
Aida Pinto
Independent Real Estate Broker - Los Angeles, CA
Real Estate Broker (562) 884-6196

Stella....I agree!  It's the best time to buy.

Oct 24, 2011 03:50 AM #6
Rainer
118,941
EC, JF, Double R and Zoey the Cool Cat
Russel Ray Photos - San Diego, CA

As one of my bosses (a Realtor) likes to say, "If you're buying a home to live in, raise a family in, retire in, and perhaps even die in, any time is a good time to buy a home." I think he's right because holding on to your home that long will straighten out any peaks and valleys in your homes value. Maybe someone should ask the buyer what his intent is in buying a home.

Oct 27, 2011 10:50 AM #7
Rainmaker
151,854
Aida Pinto
Independent Real Estate Broker - Los Angeles, CA
Real Estate Broker (562) 884-6196

Hi Eric....you are so....well your boss....is so right as well.....thanks for the comment.

Oct 28, 2011 04:53 PM #8
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

This is definitely not a market to be flipping homes. If an investor is ok with holding on to it for awhile, it could work out. My crystal ball tells me we're headed for another price dip in my market area the first quarter of 2012.

Nov 01, 2011 07:16 PM #9
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Rainmaker
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Aida Pinto

Real Estate Broker (562) 884-6196
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