I sense your disgust with Realtors. Most of us aren't economists and we don't have a crystal ball. We're in the business of selling houses. We don't get paid unless our clients buy. That's our incentive. That is the truth. Our job, as I see it, is to honestly explain the market to our clients as we see it today, and give them the best information available in order to help them make smart decisions. If we say it's a good time to buy, then we should have solid info to back it. It was hard to do that in 2005 since the market was 5 years past the point where it should have corrected. Who knew the government was going to prop up the market like that. 10 years is a typical cycle. Do I think I think we are at the bottom? Maybe. We've been sliding for a few years now. Interest rates are low. There's a ton of pent-up demand. The government is throwing money around like drunken sailors. As for what's going to happen in the economy, who knows. Anyone who tells you otherwise is full of it.

There is always a good time to buy, it just depends on your personal circumstances. That goes both ways as well. In this current market, you have to look at your local area, buy vs. renting, as well as your personal plans. I would say if you have kids and schools are important, now is not a bad time. Prices are going to continue to decline in the near future with no potential increases, but you get the stability of owning a home. When I say stability, that's of course know you would have some sort of secure income with solid savings. Also, getting yourself into a mortgage that you can pay every month pretty comfortably even with some loss in income.

Personally, I sold in late 2007 have been renting in San Ramon ever since. I do plan to buy soon, probably at the end of this year, where prices will decline another 10% from now. For my family, I don't expect my house to go up in value, but instead decline. But I have 2 kids and I don't want to get kicked out by my landlord and I need the tax deduction.

I think a better question to ask a real estate agent is: would YOU personally buy right now and if so, why.

It's not part of our job description to advise clients on whether this is, or is not, a good time to purchase property. We are not economists, nor investment counsellors and that's beyond the scope of our position.

Our job is not to tell people: "This is a great time to buy", or "this is a bad time to buy". Our job it to assist people with their transaction... so that when they tell US that they want to purchase, we help them get the best price and terms that we can, and if they choose to sell, that we help them obtain the highest sale price, and best terms.

And it has nothing to do with being "honest"... I could tell you that I think we've reached the bottom (but I could be wrong).... or I could tell you that I expect that the market will be downward trending for the next year or two (but again, I could be wrong). It's up to the buyer/seller to collect as much information as they can (as with any major purchase) and to make their decision based on multiple sources of input.

Period.

Vatamin, real estate is more than an investment. You have to live somewhere. And with prices down and interest rates near historic lows, if you look at buying vs. renting, it makes a lot of sense to purchase, especially given the fact that prices have dropped so much. This is especially true in the lower price ranges.

The only circumstances that I would think it is NOT a good time to buy is if you might have to sell in the next 2 to 3 years . If you are buying for the long term, you will likely be very happy you bought now.

As always, you can get up to date market information and trends at http://www.680homes.com/

Best of luck

Doug

Horrible time to buy. It has almost always been a horrible time. A lucky few flippers might have made some cash, but oh well. Now is not a good time to buy.
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"almost always been a horrible time to buy"?

I don't think that those of us who purchased in the 90's, and saw our property values double and triple over the next decade or so, would agree with you.

You gotta love the National Association of Realtors propaganda machine! Did you hear them say that there should be slight amount of appreciation in homes nationwide by the 4th quarter of this year?

It must be that "Rose-colored" magic 8-Ball they have.

As a Real Estate Investor, I'm doing everything I can to buy or control as much real estate as possible right now! Just like Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, said..... "The time to buy is when there's blood in the streets." In other words, if everyone is in the same bandwagon & agrees with your investment decision, then it's probably not a good one.

I agree completely with Warren Buffett, Robert Kiyosaki, Trump, etc.......Just when the shoe-shine boy starts giving you stock tips or Real Estate Agents (who have no real investing knowledge) start buying houses/land/villas so they can flip them for a quick profit.........you know it's time to get out of the market. When those same Real Estate agents and would-be speculators come crying to you to take the houses off their hands.......it's time to pick up the deals.

Worst time to buy ever. Anyone that tells you different is on drugs.

I hear your taxes are going up. Did your real estate values fall 18% from December 2007 through December 2008? Wait another year to buy, save another 18%. It is easy to time the bottom--you'll be there for years--but you're not there yet. Wait to buy. Good Luck

I’m not a RE pro but I do know enough about economics to know that NOBODY can predict what is going to happen. The heads of governments, CIOs of major corporations, failing banks, mortgage brokers and RE pros can’t predict the future and they will never be able to. Prices go up and down, houses, stocks, gas ...

The saying buy at the bottom and sell at the top only works when you look back (go look up the value chart of your home or look at the stock market) it’s obvious where the top was looking back but when everyone was at the top, nobody knew it. You can see the last bottom but you won’t know where the next bottom will be until 2-3 years after it happens when you look back and you'll blame somebody for not telling you where it was at

It's not fair to bash RE pros (they don’t really knock on doors saying “buy high, buy high, buy high!”)

It's a personal purchase and every buyer has to take personal responsibility for their choices. It's like you go to a store and buy clothes that don't fit and you get mad at the sales person because they should not have sold you the clothes

I personally should NOT buy a house if ...
1. I can't afford it (monthly payment and down payment)
2. I think I'm going to loose my job
3. I have kids (goes back to #1.)
4. I don't want to

from your examples
- 25% unemployment rate? refers to #2.
- 20% interest rate? refers to #1.
- minimum of 50% of down payment required? refers to #1.

if war breaks out in your neighborhood, you probably couldn't close the sale anyways

People will always need a place to live. Wth so many people losing their homes to foreclosure, they still need a place to live. You can be the investor who has the house in your portfolio who rents it to these families. Obviously, it is best to buy low and sell high but you have to always look toward the future when building real estate assets. The market has always gone up and down through the years. Make sure you buy and sell smart and be able to set aside money for when the market is low and you have vacancies.

Prices are still declining. Wait another year to buy, save another 18%. Good Luck

To answer your question, Michael - Yes, I personally would buy right now and I will tell you why.

When I buy a home, I like to buy a property that needs some work. That way, I get somewhere that I can make into exactly what I want. I don't have to accept anybody else's idea of upgrades etc.

Now is a great time for this. If I want to hire a contractor to do some work, many will give extremely competitive bids as there is not a lot of work about. There are a lot of "fixers" or neglected homes on the market at very appealing prices, many of them REOs for example. So I have choice. Also, interest rates are very low.

So all this means that for someone like me, it would be a good time to move. I wouldn't be doing so to get an immediately increasing asset but I know it would be a good long-term investment.

For many other people it is a good time to buy for different reasons, such as the ones you mention. For others, it may not be such a good time. I don't think you can generalize.

Looking at things as a real estate agent, my job is not to tell people they should be buying or selling now. That is a personal decision. My job is to help people to buy or sell and get the best deal when they have already decided to do so and I am very good at that.

Bernard Gibbons

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585
bernard@bernardgibbons.com

It is funny to watch them give a 5 paragrah answer that basically says it is always a good time to buy.

Now is a horrible time to buy. I wish Realtors would just be honest.

Well this is a loaded question!
Imagine that when interest rates were in the double digits for loans, people were still buying homes......

There is always the decision to make I pay so much to rent, and I will pay so much to buy and own!
Here is at this time of the economy and the market what I tell my clients, and may be this will give you back a little trust in Realtors who are considering their profession to be a service profession and a consulting profession, as I do! And yes we as independent contractors need to sell i.e. close on properties with trusted buyers and or sellers in order to get paid and have income:
So here is how I go about it:

This IS a good time to buy for first time home buyers (renters) who do not need to sell property, are financially in a solid position and have a good size down payment available and feel that their current job is secure....

This IS also a good time to buy for those home owners who have been thinking about buying a larger or newer property, a larger lot, a different location etc. and are upgrading in their new purchase, because even if they have to sell their current property for less than they would have expected a few years back, they will make up the difference in purchase price for the next property, and again for those clients who are financially sound and employment seems safe .....

There are of course many who find themselves to have to sell for a variety of reasons, loss of employment, illness etc.

All others I strongly suggest if you are a renter, save money for future down payments..... for those owning a home with no immediate need to sell, keep the home up i.e. add some nice improvements, watch the market and wait it out a bit....whatever it takes!

And yes like everybody else as Realtors we have no crystal ball to know when the markets will change and it will be different in different areas often even within the same city.

Did I restore your trust in Realtors a little?
Edith YourRealtor4Life! Working always in the very BEST interest of her clients!
edithsellshomes@gmail.com

Hi Scott,

Thanks for your honest answer.

I know that one time you should not buy is when home prices are setting record high prices.

We won't see that for a while though.

Bernard Gibbons

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585
bernard@bernardgibbons.com

The reason agents are saying its a good time to buy is that mortgage interest rates are at historical lows. Also since property values have dropped considerably across most parts of the country there are some real bargains out there.

Well Vatamin, you got a houseful of answers....
Anything you got out of them?

I know you are in California and your market may be somewhat different from other areas in the country, but believe me all markets are hurting in various different ways.

But for as long as there has been real estate - there have been buyers, and investors!
and of course sellers, some because they must sell, they must move to where the jobs are, and some because they want to buy bigger and better. Renters in good standing now instead of renting can possibly buy their first condo/townhouse or small single fam. home ......

And if you had the impression that Realtors just want to sell sell sell to make money, i.e. get the deal done, get paid and move on...... Then I want to think that you had bad experiences and I regret that, but there are many of us Realtors or like you say RE pros who are very well educated and experienced professionals, with high standards, knowing that they should be doing the right and the best for their clients and their clients' situations and circumstances.... We do have a code of ethics which we all should strongly adhere to, and if we do it will be to the buying and selling public's advantage and in it's best interest.

And if you are saying that the RE pros are pretty upbeat, you must at least compliment them on that......
As they are not looking at the market from the outside in, they are smack in the middle TRYING TO MAKE A LIVING by doing the right thing by their clients. At least I do!

But let's agree on one thing, this is a difficult market, a difficult economy and we are having way too many foreclosures and people struggling because they lost their job or other severe circumstances. So let's just all hope that things will change to the better and better soon.
Take care
Edith YourRealtor4Life! Working always in the very BEST interest of her clients
edithsellshomes@gmail.com

Horrible time to buy. It has almost always been a horrible time. A lucky few flippers might have made some cash, but oh well. Now is not a good time to buy.

To answer your question: It is a bad time to buy, when you have become educated about all the factors relating to your purchase and the circumstances make you uncomfortable or put the financial stability of you and/or your family at risk.

Each person, each town, each situation is different.

You should consider your financial stability, the costs associated with home ownership, the responsibility, the lifestyle, the enjoyment, consider what might go wrong, and if it will make you happy. Will you hold the home for a long or short term period and how will that affect your exit strategy?

Do your homework. Visit properties, obtain data, and get educated. Every community has an area more stable than the other. Based on your needs and wants you will gravitate to the area fitting your requirements.

Put buying a home in perspective. What might be good for one could be bad for the other. If it does not make you comfortable or puts you at risk financially, wait.

Dan! What a GREAT answer.

Hi Doug,

Does your answer - The only circumstances that I would think it is NOT a good time to buy is if you might have to sell in the next 2 to 3 years - apply only to the current market or it always holds true? Thanks.

Hi Bernard,

That's a good one. But in a uptrend market, every month the price is record high.

Hi Pete,

Thanks for replying. I know you pros think now is "good time to buy", and yet my question is "under what circumstances will you RE pros think it is NOT a good time to buy" per your experiences?