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?
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.
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, 2011 – It’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