Buying now vs. not buying now

Top reasons to buy real estate in 2009:

1.  Interest rates are low.  Low interest rates mean your dollars have more purchasing power and you can afford a bigger mortgage.

2.  There are plenty of choices.  Because there are many homes on the market, buyers have more choices.

3.  Negotiations favor the buyers.  In most markets, there are many more listings than potential buyers.  As I heard one real estate professional say about the way buyers are thinking:  "It's payback time!"  Funny, but true.

4.  Real estate is a good place to put your money.  Long-term, the leverage provided by holding your money in real estate outperforms any other investment.  Plus, people can survive without their stocks, but they can't survive without shelter.

5.  Nobody knows where the bottom of the market is until it starts to go back up.  Trying to "time the market" is ridiculous and nobody has ever been able to do this successfully.  (This is a good transition into the next section)

Top reasons NOT to buy real estate in 2009:

1.  Nobody knows where the bottom of the market is until it starts to go back up.  Trying to "time the market" is ridiculous and nobody has ever been able to do this successfully.  (See number 5 above)

2.  There are enough properties on the market that there isn't any reason to rush - in most cases.  Some markets are moving fast, while the majority are not.  There will still be great opportunities to purchase real estate at a discount into 2010.

3.  Jobs are not as secure as they used to be.  Even the biggest and "most secure" companies are experiencing layoffs. 

4.  Your "nest egg" could be eroded if the stock market continues to perform poorly.  "Buy low, sell high" applies to stocks and to real estate.  It might not be the best time to sell your stocks for a down payment.  Talk to your real estate professional and your financial adivsor to figure out what makes the most sense.

5.  It takes a great credit score to get a loan these days.  If you have any minor or major blips on your credit report, it could make it difficult or impossible to obtain a new mortgage.