I have and still will confidently tell my clients, buy a home when you find the home you want. I said this 2 years ago, last year and I still say it today. In fact I said it every year since 1992. If Sierra is an investor who wants to flip the property........she should wait. If Sierra wants to buy a home for her and her family and be in the home for the next 10 -25 years....she should buy the house.
I am waiting for the bell to ring indicating the market has hit bottom. I missed the bell indicating the market hit the top.
Would $427,900 two years ago been a good deal for her? The way it turned out, she would have been better off, dollar wise, waiting until this year.
I did a new search this morning using the same criteria I did then. I came up with an new average of about $150 per square foot, including distressed properties and non-distressed properties, solds and actives. That is about $21 per sf less than two years ago.
My answer today is , if Sierra did not buy last year, or the year before, is that 2500 square foot 4/2 with pool on a quarter acre should cost much less than it would have two years ago. OR that her $427,900 should be able to buy a bigger or better house or better location.
If Sierra stuck to her plan, she would have bought one year ago, not one year from now.
Or more, or less. So much depends.
The best deal will NOT be the cheapest deal.. The cheapest deal will be a house in a less desirable section of Fair Oaks maybe backing up to or sitting directly on a major thouroughfare like Hazel or Sunrise. - Maybe in need of some serious repairs. Price range? That would be a huge range from what you described. Is somewhere between a quarter million and half a million too wide a range? Then is it Fair Oaks specific or will you be looking at neighboring Carmichael and Orangevale?
Breaking down the $427,900 - That would be $151 per square foot for a 2500 square foot, 4 br, 2bath home.
A 4 bedroom home could be smaller than 1600 square feet or as larger than 3000+ sq feet. Two totally different lifestyles.
I would suggest you get set up with a client portal, start to learn the market values for the areas that you're looking so you can see how the prices go up, down, or stay the same. And meet with a lender now so you can ensure your credit is as good as it can be, you've budgeted correctly and you're ready to go. You'll get your best buy when you're educated well on the market.
But why were you waiting? The home buyer's tax incentive runs out 12/1. That might be a reason to consider buying now.
Good luck to you!