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Realize that there are a large number of realtors on this site who continually pump the market. If you have the option why not wait a while. There would seem to be nothing but downside in this market for the foreseeable future....The wave of mortgage resets continues, unemployment will continue to rise even after the economy picks up, and the banks are holding back on foreclosures to slow the pace of price decline...
Or, from those that are not realtors the answer to your question "why not wait a while COULD be:
1) To enjoy the benes of your own home.
2) Enjoying an income tax credit instead of a rent stub.
3) A possible increase in equity.
4) Becoming part of a community and help making that community grow so as to protect the value of your house.
5) To get ahead now on interest rates that will surely rise when we get a bit of inflation. Banks are sitting there ready to pull the trigger for higher rates on the first sign of inflation. So, for the money you might save by not finding the absolute bottom, you will give it back for 30 yrs. on higher interest.
As far as building I wonder if its wise because the materials are higher and I dont see any contractors cutting their labor charges. Now with and already built houses several years old these people have already been paid and are out of the picture. Its just you and a seller/bank who are pressured to cut their loses..The market is flooded with homes for sale. Take your time and look at dozens before you even think of making an offer. Always make a low ball offer first....real low
It all depends on what your particular situation is. Some of us just don't like renting - we feel we are
"throwing our money away." On the other hand, renting means no homeowner's insurance and taxes and if you are at the stage where you don't want to have to handle all the maintenance yourself - or you don't want to be tied down to one area - then renting is the way to go.
Also depends on finances. If you have a down payment, can get a good loan and you find a house you like (not just buy a "bargain" cause it is there, lol) . . . and if you are planning to stay for a while . . . then maybe buying is the thing for you. I feel like first time buyers who can take advantage of the current tax incentive would want to consider that . . . and for families, sometimes it is just not "home" until you feel you have bought into a community as a homeowner.
So it all depends on your goals and particular situation.
I think too often, the mentality over the last 10 years has become "houses are an investment." Well, yes and no. They can be. They can add to your net worth. They can also be a liability if you buy something you can't afford, or you end up losing a job, or you need to move b/c of a job and can't sell the house quickly . . . But in any case, thinking of a house as just an investment is not always realistic. A house is a place where you raise a family and make memories, for some folks. That nesting instinct is very strong for most of us.
My point is . . . basing the decision to buy a home entirely on "what the market is gonna do" is missing the boat . . . it really should be . . . "can I afford this and will it meet my family's needs." If you feel this gives you a sense of security, stability and reaches a goal for you . . . then buying a home with the intention of enjoying it is usually the best reason to take that step.
As far as building I wonder if its wise because the materials are higher and I dont see any contractors cutting their labor charges. Now with and already built houses several years old these people have already been paid and are out of the picture. Its just you and a seller/bank who are pressured to cut their loses..The market is flooded with homes for sale. Take your time and look at dozens before you even think of making an offer. Always make a low ball offer first....real low
Actually building materials are at an all time low. The only building product that has increased is roofing material which is related to the cost of oil. Contractors will negotiate right now.
My point is . . . basing the decision to buy a home entirely on "what the market is gonna do" is missing the boat . . . it really should be . . . "can I afford this and will it meet my family's needs." .
100% agree.
I think you shouldn't listen to the 'now is the time to buy' mentality. I mean really how do they know that? They can't predict the future. They probably are the same people who said now is the time to buy in 2006 at the height of the bubble and then 2007/08 when it poppped.
If you have a hefty downpayment (preferably 20%) + significant savings in case of a layoff and you found a place you want to settle down, then maybe it's a good time for you.
I also think a hefty downpayment can protect you if property values fall more and you need to sell. Then you won't have to bring money to close.
You don't want to get into a situation of being underwater on ur mortgage and stuck. Sure you may lose money but at least if something tragic happened you can get rid of the house easily and still have ur savings to use for the tragedy if need be.
As far as building I wonder if its wise because the materials are higher and I dont see any contractors cutting their labor charges. Now with and already built houses several years old these people have already been paid and are out of the picture. Its just you and a seller/bank who are pressured to cut their loses..The market is flooded with homes for sale. Take your time and look at dozens before you even think of making an offer. Always make a low ball offer first....real low
Where do you get all your misinformation? Building materials are actually MORE affordable now than they were a year ago. In addition, contractors need the business and are building for a better price per sqaure foot in some cases.
I was in the position to buy back at the beginning of the year. Closed April 30th by purchasing an inventory home from a builder that needed to unload it. Locked in a 4.5% rate.
Got my free 8K by the end of June from the government, which I was able to bank and would provide 7 months of mortgage payments if dedicated solely to that, probably 4 months of living & mortgage expenses.
My alternative was accepting that my old apartment complex wanted to raise my rent 50 dollars a month which was only a hundred dollars less than my mortgage which included taxes and home owner's insurance.
It certainly isn't advisable for everyone, but four months later I'm comfortable with my decision and am loving my new house.
I think you shouldn't listen to the 'now is the time to buy' mentality. I mean really how do they know that? They can't predict the future. They probably are the same people who said now is the time to buy in 2006 at the height of the bubble and then 2007/08 when it poppped.
If you have a hefty downpayment (preferably 20%) + significant savings in case of a layoff and you found a place you want to settle down, then maybe it's a good time for you.
I also think a hefty downpayment can protect you if property values fall more and you need to sell. Then you won't have to bring money to close.
You don't want to get into a situation of being underwater on ur mortgage and stuck. Sure you may lose money but at least if something tragic happened you can get rid of the house easily and still have ur savings to use for the tragedy if need be.
Sheenie, the reason many of us say this is because of the historically low interest rates - they have never been this low in my adult life and are not going to last. When they go up again it will be a long time before we see them like this again. THAT alone makes it a great time to buy, IF you are financially ready and actually need a home.
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