Nobody has a crystal ball and can accurately tell you when is the best time to buy. It is up to your personal needs. Most buyers want to get a great deal and when the prices start to increase again then you have missed the sweet spot. A good question to ask yourself is , Is it better to buy when there are less buyers out there or more buyers?
Another qood question to ask yourself is how long do you plan on living in the home?
The previous answer regarding Interest rates is what buyers should be more concerned about if they plan on getting a mortgage for the home. If the homes prices dropped say $ 100,000 and we had a 1% increase in interest rates then it would nullify out.
The facts are :
Right now the orices have dropped about 27% in OC
Interest rates are at the lowest in 37 years
Home affordibility is highest in many years.
Many sellers are desperate to sell
There are record numbers of REO properties on the market.
Another suggestion would be to work the numbers with a lender on some different scenario's such as
Loan with todays rate and calculate the payments also review the tax benefits
Loan with say .5 or 1% higher rate which the experts say will have to happen to stave off inflation increases.
Tis might help you once you see the numbers
Hope this is helpful to you
First Team Real Estate
Bottom line, if losing value on your home will make you lose sleep, than now is not the time to purchase. If you believe what you read, than 3rd Qtr of 09 is the time many experts have foreseen the market to change direction, the same time the recession is expected to end. In reality, nobody knows. It's all best guesses.
It's best to find out what your payments on that home would be today, and what that same payment would be like if interest rates went up. A good lender can do the math for you. Depending on the price of the home, the payment can be much higher with a lower purchase price but a higher interest rate.
Best of luck either way. If you have any other questions, let me know. I would be glad to help, and work through the holidays.
Century 21 Beachside
It's great that you're thinking carefully about making this purchase and looking for an upward trend. However, the days of a 2-3% upward trend over a 90 or 180 day period are over and likely never to be seen again. The days of double-digit increases are certainly finished. The national trends never really move more than a few points over the course of a year. Record-low mortgage rates cannot last over the longer term. Banks are losing money (as we see from the baliouts) and have to make up for their losses someplace, so rates will have to increase soon. Typically when the Fed lowers the "Fed Rate", fixed 30-year rates increase as they did this week.
If this is a property you are going to use as your primary residence, why not buy now while rates are down and prices are great. The tax benefits you will gain over the period you are waiting may outweigh any small downward movement in prices but check with your tax advisor on it.
Anyway - it's great you're moving towards the right decisions.
Best of luck,
Broker & Realtor