Best Time for Buying a Home?!

Trying to predict when the housing market will hit bottom is not an easy thing to do, however it is clear that the housing situation is still facing some tough times ahead.

The latest price statistics indicate that the market is still struggling.  The S&P’s Case-Shiller Home Price Index for 20 large metropolitan areas was down 17.4% compared to last year. The National Association of Realtor house price statistics for September also show a decline.

Since foreclosures and mortgage delinquencies have been rising and the job market and the economy are in an official recession, there is no clear sign of a housing recovery. Additionally, despite both the government and private companies attempting to revive the sector, it is unlikely that the real-estate market will improve significantly in the foreseeable future.

In fact, timing real-estate during a bad economy could be just as tough as timing the stock market. For one, purchasing a house cannot be done at a moment’s notice. You have to locate the house you really desire, then settle on the pricing and establish financing. The odds of perfectly synchronizing all this with a roller coaster market are very unlikely and, even if prices do begin to rise, they might do so very slowly or fall yet again. Therefore, since it’s hard to time the market for the real bottom, now is a plausible time to buy, especially if you plan on living in this house for several years.

If you’re truly serious about purchasing a home, you’re actually in a good position as a buyer. Prices have gone down over the last year which would provide a buyer with leverage for negotiating a good price. There is plenty of supply out there so no need to take the first offer that comes across.

This is the time you can dedicate to doing significant research in locations that you would like to live. Websites such as Zillow, HotPads, Trulia are quite handy in this endeavour.

It’s also important to go and explore several neighbourhoods, as well as talk to other people about the area and what is like living or working there. You may also be able to come across a true bargain home that is in foreclosure or where a seller is wishing to avoid one.

Since lenders are more selective about making loans these days, it is also important to have all your financial information ready to go. So already prepare your income, assets and expenses information and start looking for which lenders will offer the most competitive loans.

On a related note, you may wish to explore the possibilities of incorporating green technologies into the home you are planning to buy and even make money doing so. EcoQuest International is one of the nation’s fastest growing provider of air purification products. Discover how you could start a green home business with Ecoquest here. There are various opportunities to make money by going green so check out this Go Green Business Opportunity blog.

Since knowing where the market bottom will be is hard to do, it is probably better to buy a home too early than too late. When markets are declining, buyers will have more choice and negotiating power. Buyers would do themselves justice by purchasing when markets are on the decline, interest rates are low and inventory is abundant. If the mortgage offered to you fits within your budget, you are in it for the longer haul, and you are not looking in overly popular location or in locations experiencing severe industrial decline, the time to buy is now or soon. If buyers wait beyond at the bottom, in a rising market they are likely to face more competition from other bidders, less choices, and possibly higher interest rates. Long term buyers who are acquiring a residence have no real reason to wait until after a bottom is evident.

Happy House Hunting!