Is now a good time to buy, or should I wait?
In a previous article we looked at whether now is a good time to sell. Now we'll look at the other side of the coin: is now a good time to buy, or should wait?
Again I'll bring out that old warhorse: "Now is a great time to buy or sell real estate". Because it just doesn't get any better than this for buyers.
You buyers are shaking your heads in disbelief. "Yeah, right. How can it be a great time to buy when I'm competing for every house I like?"
Step into my time machine and we'll go back to real estate markets of the recent past. Why? Because history does repeat itself. Past markets often get recycled, with one or two small changes. Go through enough real estate cycles and you discover that yesterday's markets often look much like tomorrow's markets.
Let's see if they're worth holding out for.
Okay, let's stop at this real estate market. The stock market is booming, wages are high, jobs plentiful. Prosperity stretches endlessly to the horizon, and no one minds taking on the long-term commitment of a mortgage. It's a great time to buy, right? Everyone thinks so, and multiple offers drive home prices sky high.
"Nope. Too much competition. Better wait."
Okay, here's a good one. Now real estate is a lot friendlier to buyers. Home prices have shed tens or hundreds of thousands of dollars—even millions at the top end. Half the homes on the market don't sell, as the few buyers still in the market cherry-pick the best and leave the rest. Now it's a great time to buy, right?
"Gosh no. The economy is in the tank and my company just went through another lay-off. None of my friends think it's a good time to buy. Better wait."
Okay, how about this market? Stocks have rallied, and the Fed has cut interest rates eleven times in one year. It's spring and buyers are back in the market, tired of putting their lives on hold.
"No, I don't want to get in a bidding war when the economy isn't 100 percent. Better wait."
Moving along, here's another great buying opportunity. The threat of war casts a long shadow over real estate. Sellers are nervous and motivated and plenty of homes are available, but only a brave handful of buyers are willing to take the plunge as we slouch toward Armageddon. Home sales are sluggish, prices flat as real estate treads water.
"Way too risky. Better wait."
All off, end of the line! We're back to the present. You've seen the future through the past. What do you think? Should you wait for the perfect time to buy?
Will there ever be a perfect time for you to buy? Or will you settle for just "a great time to buy"?