Is now a good time to buy real estate? 

 

With all the media buzz over the mortgage industry shake down, many consumers wonder whether now is a good time to buy real estate

 

Of course, no one can predict the future.  What we can do, however, is evaluate our individual needs and motivations, study the factors and trends in the market, and then make a wise decision – one that is good for us as individuals.

 

First…What other investment gives you a tax write off and a roof over your head? What other investment allows you to gather with family and friends and create memories? Real estate is not only an investment vehicle,  it is shelter and it is home.

 

If you are looking to buy real estate for the short term – less than three to five years- there is always a greater risk. The longer you own a property, the more immune you will be to changes in the market.  In addition, there are acquisition and selling costs involved with property. We need the appreciation we build over time to buffer these additional costs. For those who buy and hold, real estate has proven to be a wonderful investment.  

 

Each market is different. What is happening in the market that interests you? How much inventory is on the market compared to a year ago? Are there more or less homes for sale? Don’t judge by ‘For Sale’ signs.   You need hard data. How many properties sold this year compared to last year? What is the ratio of sales price compared to the list price? How does it compare to the sales a year earlier? How long are homes on market?

 

An experienced Realtor can help you sift through the data to learn about your market. When you locate a property, the Realtor will also prepare a ‘CMA’ or Comparative Market Analysis for you. This report will reflect the selling prices of similar properties that closed in the past 6 months. Together with your Realtor, you can then prepare a negotiating strategy and determine an offering price.  

 

So, don’t let the media deter you! This can be a great time to buy. Simply make wise decisions for you, based on the facts of your marketplace and your individual needs.