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Is it the right time to buy?

By
Real Estate Agent with RE/MAX R.E. (Mountain View)

You probably should wait to buy if:

- Your job is on the line.

- You want to pay higher interest rates. Interest rates are at a record low level, with prime rate being 3%.

- You are 100% sure that the house you want to buy will be available when you are ready to buy.

- You want to continue paying someone else's mortgage by continuing to live in a rental accomodation.

The question is whether the market has bottomed out. I wish someone knew the answer to this. But this is certain that the market will rise abruptly before anyone knows. As warren Buffet says "we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful".

So go ahead, check your credit, get preapproved and buy before the house you want to buy has a sold sign!

 

 

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Mike Regan
PompanoBeachAppraisers.net - Pompano Beach, FL

I think the bottom of the market will be reached when home value to wage ratios return to historic norms. I don't know if we have reached that point, I'll have to research it. But I think in a bad economy that ratio may dip below historical norm home value to wage ratio for brief time. Home value to wage ratio were way to high at the top of the market. Now we are swinging back.

Feb 03, 2009 01:53 PM