"When is the right time to buy?" is probably the most frequently asked question by buyers. There isn't a definite answer to it because each buyers situation is different.
Some should have bought last year but missed the train. Some should maybe wait a little longer but for some buyers the right time to buy is RIGHT NOW. It really depends on your financial situation, the type of property you are looking for and what your local market has available.
Keep in mind that every market is local. I remember last year my Mother in law told me all excited "They just said on CNN that home sales are increasing!" I asked here where and she said she didn't know. Honestly, as long as I don't see a change and I mean any change in my own local market, it doesn't matter much to me how real estate is doing else where. I don't sell real estate else where, I sell real estate in Sebring, Florida.
Speaking about real estate in Sebring, Florida - or all of Highlands County for that matter - market conditions are not as favorable for buyers as they have been in previous year. Take a look at this:
Residential sales in Highlands County within last 12 months: 1331 (average of 110 sales per month)
Residential listings in Highlands County currently available: 1129
So if we keep selling an average of 110 homes per month, we'll run out of inventory in 10 months. 10 is our Absorption Rate, we are STILL in a buyer's market. Once we get down to a rate of 7, we are approaching a neutral or balanced market. A 1-5 months supply of inventory is a seller's market. In 2008 our Absorption Rate was 23!
So it's still a buyer's market and you might still be good to go waiting for prices to drop down further. Just in case though, take a look at this:
Let's say you are looking for a 3 bedroom home in Sun n Lake of Sebring, you are pre-approved for $80,000 and would like to move in before the summer break ends so your kids don't have to switch school.
Right now, I can show you 19 3 bedroom homes in Sun n Lake, only 5 of them are priced at or below $80,000. Since you want to move in before summer break ends, a short sale is probably not a good choice to make because there's no telling if and when you'll be able to move in. Let's stick with fair market sales and REOs. Well, we're down to 1 home I'm able to show you. That's right! There's only 1 home with 3 bedrooms for under $80,000 available in Sun n Lake that could work out with your time frame and that is only if you make your offer asap because you are likely not the only prospective buyer for this home.
Just yesterday I spoke with a someone who's kids were outbid on a $80,000 Jackson Heights home in Sebring. There were multiple offers on the property and it wasn't even a REO.
When is the right time to buy? How about right now?
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