I was asked this question by a friend of mine. With all the bad news you hear and read about with the housing market right now it doesn't seem to be the best time to buy. Correct me if I'm wrong! This question prompted me to write this message to all of my friends because I know this is the question on the mind of every consumer!
As a Realtor I get asked this question all the time!!! I would have to argue that now is the best time to buy! All the news you see on the housing market crisis is the nation as a whole. When you look at just Washington State, yes our market is down slightly. We are used to an above average market; the kind of market where houses sell in a matter of days. Our market wasn't down until people saw what was happening around the country, got nervous, and stop buying. If you look at the statistics we are up 30%-37% from 5 years ago (depending on the area). It was up over 40% before the media scared everyone with this talk of a housing crisis. For people who bought there home 10 years ago there home has nearly doubled in value!!! The numbers show that Washington is just in an average market right now with a little over 6 months of inventory. I know your thinking so why is now a good time to buy?
Every investor knows that you do not make money in Real Estate when you sell. That's just when you receive the money. You make the money when you buy. So you buy in a down market and your value will go up over time. With the FEDS bailing out Fannie Mae and Freddie Mac this is going to lower interest rates and jump start the market. This move by the FEDS will help a market like ours first. Our market is not as bad as the rest of the country. People who can afford a house will get a great price and good interest rate for a mortgage payment on there new home. Buyers who couldn't afford a house a few months back can now get financing and afford to buy a house. This in turn will get people buying and selling houses again and our market will turn around. The question you have to ask yourself is. Are you going to wait to see on the news that values have gone up before you step up and take action? Are you going to wait until prices start going up to buy? Just some food for thought; the average consumer will not know when the market will hit bottom until prices start going up!
Now picture this. Those people who bought 5 or 10 years ago are sitting in the driver's seat. They can hold off and wait to sell when the market goes back up. They can also decide to sell now they take the equity they have in there current home to buy that home they have always wanted. They would get a great price and a great mortgage payment on there new house. When the market turns around they will still be in the driver seat. They will be able to make the decision on when they want to sell and to get a return on there investment. Not let the market dictate whether they get a return! I hope that I have answered some questions that you have been thinking about. If you ever want to pick my brain about other Real Estate related topics feel free to message me or call me at 206.225.1130.