Timing aHome Purchase

One of the most frequent questions that people ask me about is the direction of the housing market and if its a good time to buy a home.Most people have heard about the soft real estate market and have seen home prices fall in most communities.People have also heard about the number of building permits being lower than previous years and the large numbers of homes being foreclosed upon and a weak economy.To further complicate matters,there is not a clear picture of when property values will stabalizeMany lending institutions have become more conservative in their lending standards.Considering these factors,its understandable why many people might be reluctant to purchase a home.
Purchasing a home is a major decision and complicated by our current economic envirement.There are always risks for the home buyer such as possible decrease in property value and ability to afford the upkeep of a home if he/she no longer has the income to pay for basic living expences.While there are reasons not to buy a home,there are compeling reasons to purchase a home.While there is always a possibilty of losing employment and further declines in home values,its important to look at the long term picture.
Real estate has always been cyclical in nature.Most areas have shown price declines and an increase in affordabilty relative to wages.Interest rates are currently at historic low levels.Despite the difficult real estate market,this can be a perfect time to buy.Its clearly a buyers market if you can afford the mortgage payments and upkeep of the home.However,there are a number of key considerations. They include your willingness to take a long term view to home ownership.The costs of home ownership should also be weighed against options such as renting or sharing space with friends or family.Also the benefits of creating equity in your new home and potental tax benefits garnered from mortgage interest.
Its clearly a challenging time to purchase a home.There are some risks but potental advantages for the prospective home owner.Each persons situation is different and each geographic area has its own positive and negative points.Its always helpful to meet with a local Realtor regarding the timing of home ownership