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Lynne O'Brien, Real Estate Pro in Hull, MA

Financial experts are saying that now is the "best time" to buy a home. Do you agree?

Asked by Lynne O'Brien, Hull, MA Sun Feb 20, 2011

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13
More thoughts. This question is confusing because it says "best time to buy a home" which implies that everyone wants to and needs to buy a home. This is not true for many people. As a landlord, I have turned down some people and realize if you want children, it's probably best to buy a home unless you can find a nice place to rent. Families can be loud and want to decorate, maintain, plant things, stay in the same place and build on, save money by doing it yourself.

Under these circumstances, I feel buying is best for your life if you feel you can stay in that home for a while and send your kids to the same school while making a living.

With the job market changing so much, you could find you work far from home or are not able to get a job in your field but you still want to stay in the neighborhood for the children. It would be nice if someone living in the home contributing to the mortgage had a steady income such as social security, rental income, work from home, local business.
1 vote Thank Flag Link Tue May 29, 2012
Who believes financial experts anyway. Do we pay their salary to tell us the truth?
Flag Tue May 29, 2012
A house is real, money is paper. If you have a lot of paper, get something real. Just remember that the price you pay for your home is low compared to what you will pay in expenses such as taxes, upkeep and interest on a loan. If you have to move for work, owning a house might be dangerous to a marriage. Could you find an honest property manager if you had to move and would the income from rent pay for the cost of the home over time? Books I have read say rent should pay for the house in 10 years. Over the past 25 years, I have not seen this happen anywhere. Do the math. If your home is priced very low and has low maintenance and high rental stability potential and the formula works, it could be a good investment.

While owning used to offer a feeling of security, it may now be the opposite and be a weight to your mobility. Funny how things change in just a few years. Some people who thought a marriage, home and children would add to their level of security have found the exact opposite.
1 vote Thank Flag Link Thu May 10, 2012
Never been better, IF you can get through all the wickets to the home loan process!
0 votes Thank Flag Link Wed Nov 21, 2012
Absolutely, these rates are historically low, and will start to rise at some points. The market favors Buyers right now, especially cash buyers, so those buyers needing a mortgage will need good credit and a home reasonably priced in order that it will appraise. At this time the market favors Buyers
0 votes Thank Flag Link Wed Nov 21, 2012
A year later............. Interest rates are lower and so are home prices. There is no definative 'best time' to buy. If you are ready to buy a home and can afford it (20% down) then do it. Don't try to time the market. It is funny that whenever you hear that it is the best time to buy, it comes from someone who's income is connected to the real estate market.
0 votes Thank Flag Link Tue May 29, 2012
Yes, the cost (price + mortgage) of buying a home is now historically low. It is doubtful the cost will appreciably go down from here.
0 votes Thank Flag Link Fri Mar 4, 2011
Absolutely!

There are several properties on the market...so you have lots to choose from in a home! Then add in the supply of homes being greater than the demand, the buyer has great negotiating power!

The bonus is interest rates are low! This gives buyers more buying power!

So I say with all those ingredients ... if you are ready to make a move...now is the time to get off the fence!
0 votes Thank Flag Link Mon Feb 21, 2011
Anytime is a great time ... receive annual tax benefits owning a home

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sun Feb 20, 2011
All great answers! Feel free to check out the article that I wrote on this subject on my blog recently;

http://www.trulia.com/blog/vicki_holmes/2011/02/should_i_buy_now

Vicki Holmes
0 votes Thank Flag Link Sun Feb 20, 2011
YES! If you are an investor and have no emotional attachment or need for the property.
YES! If you are wanting to improve your quality of life and influence within the community.
YES! If you find the right home in the right location. As an end user, real estate will always be a good long term investment..
YES! if you want to get ahead of the consequences of inflation related to interest rates.

No! If you are financially strapped and MUST get a 3% down home
No! If you are not able to cover ownership costs that threaten to increase by 35% in the next five years.
No! If you are considering using Bank of America to acquire a mortgage.
No! if you think it will be difficult to pay a mortgage AND $6,000 to $13,000 annually for health insurance.
0 votes Thank Flag Link Sun Feb 20, 2011
Lynne
The same experts (big bank economists) who are saying prices will bottom out the first half of this year are working for the lenders who are now more aggressively pushing their huge "shadow inventory" backlog into the market in the form of short sales and REOs to drive those prices down. So they make their projections a self fulfilling prophecy. At same time there is every indication that we will see interest rates rising over time. Low prices now, combined with progressively higher interest rates as time moves on makes “now” the best time to buy. Remember a 1% increase in the interest rate is a 10% reduction in the mortgage amount someone can afford.
0 votes Thank Flag Link Sun Feb 20, 2011
Who can give a definitive answer to this question? Homeowners have different needs for the property they want. Price activity is different for different communities.

It is certainly an optimum time. Rates are still low. Price levels in some of the communities in my market have not been seen in a decade. Buyers have the advantage in choice, price and negotiations. If not best....pretty darn good.

Millie C Lumpkin, SFR
Realtor
Century 21 ProTeam
Email: mlumpkin@c21proteam.com
0 votes Thank Flag Link Sun Feb 20, 2011
We're close to it being the best time to buy a home.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Sun Feb 20, 2011
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