I'm sure there are many people asking the question, "Is now the right time to buy?". Nobody really knows for sure. However, there are some facts that you can look at to help evaluate whether or not now is the right time to buy. For one, mortgage rates are currently close to the lowest they've been in almost 50 years. In addition, home prices are low and probably close to the bottom. There may be a little more ways to go, but I think we're close. With the Spring homebuying season upon us, we may see an increase in sellers in the market, which will increase inventory and possible push home values even lower. Read more
According to Federal Reserve Chairman Ben Bernanke, an economic recovery will not begin until next year. Read more
Along with low home prices and low mortgage rates, there's also the First-Time Homebuyer Tax Credit of up to $8,000. This is an additional benefit, especially for anyone that has not purchased a home in the past three years. I have an earlier post that goes into more detail about this program.
So we go back to the ultimate question, is now the right time to buy? My answer really doesn't have much to do with whether or not we've hit bottom or if we're even close to the bottom. I feel that if you can buy a home in the right location, below the current market value, with a mortgage rate currently at historic lows, then I believe it's the right time to buy.
If you're interested in purchasing a home, please feel free to contact me anytime for assistance. I will be happy to help you out. To receive a copy of my 27-page Buyer's Guide, click here.