Yes, the prices could go down, but the rates can go up. But you can refinance it later, right? Maybe. We had that luxury the last 6 years, but do you really think rates will rise for a few years, then dip back down again? If so, you better be right, because you will have to keep that higher monthly payment while you are waiting.
Yes, prices will go lower, in SOME areas. Prices will rise in very few areas. Rates will rise or fall in ALL areas, but do you want to time the rates?
Where I live, our median price has changed less than 3% over the last 2 years. Is it at the bottom? I don't know. Will it get worse? Probably. No one can predict what will happen.
I tell everyone the same thing when they say "When is the best time to buy?"
Answer - "When you can afford it, know the market and feel you got the best deal possible."
If you feel you can do that without a Realtor, more power to you. I wouldn't recommend it, however.
Your local agent has spent hundreds of hours learning their market. If you don't think it's right after looking at the market, sales data, sales trends, you just walk away. See you next year.
The cream always rises to the top.
Who will ring the bell when the market has peaked or reached bottom?.
Interview and select a qualified real estate professional from an established reputable firm whom you believe will work in your best interest.
Realtors are sales people. We are hired to sell your home or help you purchase a home. There is a professional way of doing business and those who do earn the respect of their clients who sometimes become friends and collegues.
Keep in mind that your neighborhood of choice may not reflect the broad generalizations found in the national press.
Real estate is a neighborhood by neighborhood business. Even AOL (America On Line) knows that.
All the best.
When I and all my friends were recently selling our properties they were telling us with no exception that the market will continue going down (which is true!) and that it will continue for another 2 years (which is very possible).
Now that we are shopping for smaller homes, they are all over us trying to convince us that the market has reached its bottom and now is the best time to buy!
If you read the financial reports you should know that the mortgage debacle is still unfolding and that there will be an enormous inventory build-up that it will take years and years to move.
Obviously, it will create a huge price pressure and further reduction: some analysts say that the average loss in house market value may reach another 30%-40%.
Your best bet is to rent now and buy 2-3 years later.
But then, again, you don't have to listen to me, as I am not a real estate professional.
Good luck with whatever your decision will be!
Best to have your friends work with a real estate professional in the area you are considering.
Some areas are experiencing a slow down and prices are slipping.
Other areas have stable pricing and in fact rising.
Best of luck in your search.
Eileen Lanza Keller Williams LA 323.810.7935
If you really like the house and the area, there's no reason to wait if you plan on living there for several years. In the real estate market, the value of homes is going to go up and down over a span of years. As long as you're happy with the home that you purchase, you should get it when you're ready to move and not be so concerned with what's going to happen to the value after you purchase. If you wait too long, some one else might buy it and you're going to be constantly looking for something else you like in an area you want to live in.