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.