No one can prefict exactly when we have hit the lowest point of the market, because by the time everybody realizes that it hit bottom, its already too late and on the rise! Now is a great time to buy, if you can get approved for a loan. Sellers need buyers, lots of inventory, and a very slow market give you, as a buyer, all the advantages in today's real estate market. Make use of it!
LA Real Estate Group
Find the place you like.
Figure out the approximate rental value of that place.
Multiply that rental value by 100 and then by 120.
That is the range you should be paying for the place.
Let's say you want to buy a home in Los Angeles that you can rent for $2000. Then, using the formula, you figure that the price should be between $200,000 to $240,000. If it is anymore than that, then prices are still too high and will be going down.
Don't buy this BS about "Who knows when we will have a bottom?" That's garbage. The best indicator of housing values is rent. Only an imbecile would buy a house when those figures don't calculate correctly.
And unfortunately for housing prices, banks won't give imbeciles loans any longer.
Right, realtors? Please confirm.
The answer to that is: Yes, generally prices probably will go lower. I don't have a crystal ball, but I do know that the market got way overheated in 2005 and 2006 and we're going through a correction. I do know that foreclosures are high and rising. And they'll continue for a while. And I strongly suspect that Bush's plan to slow down the foreclosures won't work. (Let's see, you have to have mediocre credit, but not real good credit. You have to be struggling, but can't have missed more than one payment. And lots of other terms and conditions. Even then, it's voluntary for the lenders.) Plus, a lot of people are just scared of buying right now. So, a reasonable person might come to the conclusion that prices will decline for a while longer.
Having said that, if you find a place you really like, you can get it for a good price, and you plan on staying there 5 years or more (to give the real estate market a chance to recover), then now is a great time to buy. Interest rates are low, housing inventory is good, it's a buyer's market. Find something you like, negotiate a good price, buy it, and enjoy it for the next 5-10 (or more) years. You do that, and it'll work out just fine.
Do you know how we'll know the prices have bottomed out? It's when investors start buying and prices start going up. Noone can predict when this will happen!
Now is a great time to buy. Prices are soft, invertory is high allowing better choices for buyers, and most importantly interest rates are low!
No one has the crystal ball answer to whether or not prices will decline over the next 6 months, nor what interest rates will be in 6 months.
Interest rates are exceptionally low now, and there are many exceptionally good values on the market now.
If you find the home you like "the one that gives you the warm fuzzies", you may want to strongly consider buying it. You will probably be very happy in the long run
Best of luck