Time To Buy

Time To Buy?

It is time to buy a new home?  That is the question many Americans are asking themselves.  The answer quite frankly is different for everyone.  There has been a drastic dip in home prices over the last couple of years which has sparked interest for investors and first time home buyers.

There are a few questions that should be considered before you buy a new home.  If you are a first time home buyer you need to think about how long you plan to stay in the home.  The real estate market will recover, and if you plan to live in your new home for years to come, this is a great time to buy.

Real estate experts believe that we will reach the bottom of the real estate market in 2009.  It remains to be seen whether that will be the beginning or the end of 2009.  Home values in many areas have already dropped by as much as 50%.  The biggest drops were in areas that have had the biggest increases over the last decade or so.

Why are you considering buying a home?  Real estate investors have been hurt by the drop in home prices.  The coming year or so may be the opportunity to recoup those losses.  Once the market hits a low there should be a decent recovery pretty quickly.  We could see home prices rise 10-20% within a year of hitting a bottom.  Many buyers and investors are holding off right now, becuase they want to see the bottom.  When that bottom hits houses will begin selling quickly and home values will increase quickly as well.

There are far too many factors in buying a home to discuss in this quick article.  If you are long term then now is a great time to buy a home.  If you are an investor the risks will always be there, but the risk is much less now than it was a year ago.