Is Now the Right Time to Buy?

By
Real Estate Agent with Solutions Real Estate CA DRE #01490977

 

Is Now the Right Time to Buy?

 

That’s a loaded question, but one we hear often in our business.

So how do you answer it?

And more importantly, what do you think consumers are thinking about this question if they are not working with, or consulting, a knowledgeable REALTOR familiar with the local market?

Is NOW the right time to buy a home?Certainly many headlines and news reports paint a pretty dire picture of the housing market. While we know real estate is local, consumers don’t necessarily, and being plastered with dour predictions and confronted with scary headlines does nothing to inspire confidence, even in the face of historically low interest rates.

Did you know the price-to-income ratio, which, according to JP Morgan Market Insights, has ranged from 150% to 251% since 1966 for the average median priced single family home (but mostly between 185% and 230%), is now at 153%?

Emotions are high right now, and pretty negative. That doesn’t help our housing market.

 

So is now the right time to buy?

 

Certainly many agents and mortgage professionals believe so. Are people listening? Maybe. Do they trust us? Aah, hard to say.

Clearly it depends on having the cash, a job, and the credit to do so. But all things considered…

I recently attended an exceptional talk by Steve Harney with Keeping Current Matters. His talk focused on the uncertainty and fear many are feeling about the market, resulting in buyers not getting off the fence and sellers being afraid to adjust prices. And a major point e made was that confidence can and must be rebuilt by gaining trust…and we need to know the answers so we can gain that trust.

 

 

Is NOW the right time to buy a home?Are homes selling? You bet. Harney shared the fact that based on sales YTD and year-end projections about 13,452 homes are selling EVERY DAY! That’s up 11.3% over last year overall.

And 80% of those got a mortgage he says.

Just out of curiosity I looked at the data in San Diego County - we are selling 86 homes per day based on MLS-reported sales YTD as of yesterday (not including mobile and manufactured housing or multifamily homes).

Harney pointed out that 4 leading and different financial resources recently (source – KCMBlog.com) concluded that now was the time to buy (obviously there are some exceptions). Mr. Harney shared these in his talk on November 12 in Anaheim, and I thought some of you would be impressed and might want to share with clients and prospects.

 

Wall Street Journal – October 15, 2011It’s Time to Buy That House

 

MarketWatch.com – October 2, 2011 -  Now Might be the Best Time Ever to Buy a Home

 

 JP Morgan Market Insights –  Housing, A Time to Buy

 

Forbes Magazine – October 13, 2011 – The Next Mortgage Crisis

 

I’d say this information is pretty important and worth sharing. Don’t you?

I’m working on some communications to share with my clients (past and present), prospects, and sphere.

You might consider checking out Harney’s stuff if you are not already familiar with it and decide for yourself. If nothing else, take a look at these articles listed above.

 

Keeping Current Matters (get it??!!) website

KCMBlog.com

 

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Rainmaker
1,138,943
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

There are more pending bank owned homes in most areas I work now then there are active bank owned homes and pending sales are way up.

Nov 28, 2011 04:05 PM #1
Rainmaker
1,765,571
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I liked what you said about the public being effected by the national news, and not so much the local market in which they live. Thanks for the post Jeff.

Nov 28, 2011 04:18 PM #2
Rainmaker
1,792,371
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Jeff, everything is local and I do believe that building equity at some point in owning a home is the better way for a current renter...but it is so tough for many of them now to come up with the down payment...that is what I am struggling with here.  Our inventory has dropped substantially, I'll do a blog on it, because sellers are withdrawing homes to just stay in them now...everyone has their price point to move on.

 

This is a great blog with much info for all to READ...as you say staying abreast is prime to doing well in our own areas...best

Nov 28, 2011 11:15 PM #3
Rainmaker
564,123
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

Jeff - If negativity is a sign that we've hit bottom, then I'd say we have absolutely reached the depths of the market.  That would certainly make it the best possible time to buy.

Nov 28, 2011 11:18 PM #4
Rainer
324,283
Don MacLean
New England Real Estate Center Inc. - Easton, MA
Realtor-Homes for Sale- Easton Mass

Jeff, Great news to pass on.

Unfortunately the news is gloom but people need to realize that each and every area is different. With prices down and interest rates down.........................now is a great time to by

Enjoy the day

Nov 29, 2011 12:41 AM #5
Rainmaker
3,131,357
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Interesting....yes, I think it is a great time to buy a house, but as always, ONLY when one can afford to do so.

Nov 29, 2011 01:16 AM #6
Rainmaker
1,333,748
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Jeff - Prices in my area have been pretty stable for the past few years, so a lot of buyers who were on the fence are now getting off.

Nov 29, 2011 01:49 AM #7
Ambassador
3,987,600
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Chuck - that is good news. THe NAR report that just came out stated that homes sales in Q3 2011 increased IN EVERY STATE over sales in Q3 2010. I see that as a positive.

Tom - I think thepublic is getting blasted on all sides by negative information. Not that there aren't some issues but we don't see to hear about more positive things that are happening.

Jeff

Nov 29, 2011 07:28 AM #8
Rainer
355,740
Nina Rogoff
RE/MAX Executive Realty - Medfield, MA
Sells Real Estate!

Jeff, thanks for the link to the 4 newspaper articles and telling me about Steve Harney. I'll have some reading to catch up on this weekend. I get stopped everywhere I go around town by people who ask, "How's the market doing?" They want to know about the local market, specific to our town, because that information isn't posted anywhere. Well, except my blogs! :) Thank you for helping me learn to do that better.

Dec 08, 2011 11:20 PM #9
Anonymous
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May 31, 2012 01:32 AM #10
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Jeff Dowler, CRS

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