Why buy a home today?
I have clients that want to enter or reenter the Los Angeles real estate market; it’s all about timing. When is the best time to purchase residential real estate?
My advice:
First, speak with your accountant: How much is the tax write off going to help your particular situation? This answer will let you know how much of a hurry you are in.
Interest rates remain unbelievably favorable –I worked in the banking industry when fixed interest rates jumped to OVER 20%.
There is less competition, fewer bidding wars and fewer multiple offer situations. Buying a home is more leisurely, you have the time to make an educated decision.
Only you (not your parents, not your friends) know if the time is right. But if you do decide to buy a home because you are looking for a home, (a lifestyle, a sense or security, roots) and plan to stay in the home for at least several years, now IS a good time. Rates are low and prices are favorable. Take your time; learn what type of home you want, the location you desire and if you can afford it – go for it!
If you have some cash to put down on a house and the ability to make payments, this is a great time to buy.
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Phyllis,
Now is NOT a good time to buy. Yes, its better than 2006, but prices will decline significantly. I know realtors have to make a living but please do not give out false info. Yes, interest rates are low, but it does not matter when lack of affordability is extremely high. FYI I'm a DRE broker but I tell my clients to wait until the dust settles, which may be 2-3 years away.
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You could very well be right that prices may continue to drop, but if they do drop do you think they will drop more than another 10%? Rates are low - very low, and they will probably rise, after the election. Our economy is tanked, we have debt, the $$ is terrible. Higher interest rates = higher payments.
I am not instructing people that they should buy a home as an investment but if you are buying a home today as a place to live and settle down, the timing may be right for you. No one should hurry, and buy a home, but if a potential buyer thinks the timing is right (for them) then they should become acquainted with the market and make an educated decision.
Two years ago was a bad time to buy! Now is a good time to buy! Will next year be better? Who knows, my crystal ball is dirty. But if rates go up & prices go down.....
And what is a DRE Broker?; we are all members of the DRE (Department of Real Estate). I have never heard of that expression a "DRE Broker". BTW do you have a web site? When you post a comment if you include it - you gain a link (which is a good thing).
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