Why? There are 3 major forces at play that rarely, if ever, have come together at the same time:
1. Very low interest rates
2. Low property prices
3. The $8000 tax CREDIT for first time homebuyers
Some are referring to this as a sort of "perfect storm" - I've been calling it the "Real Estate Trifecta." (Google It)
Prices will probably stay low for a while, who knows what interest rates will do...and the $8,000 credit will be going away before Thanksgiving. If it isn't a good time to buy now, when will be?
Have we hit the bottom? Don't know. If the very bottom is what you're waiting for, then good luck identifying it - Robin does a good job of answering that below. Rather than waiting for the bottom to hit absolutely, take a look at value...and factor in how much your money to buy it costs. Waiting to save a few thousand dollars on the price may actually cost you more in the long run if interest rates go up.
The housing inventory for homes currently listed on the MLS is at the lowest point in over 30 months. Obviously we are burning of some excessive inventory and moving in a direction of greater stability....it's either the bottom or a very good false one.......
Let's hope it's real
Now that you have heard all the responses listed below, I'm just curious to hear what you think of the market and if you feel it's a good or bad time to buy?
Give us your thoughts...
Inspire Realty Group
I think it is a GREAT time to buy, particularly if you are a first-time home buyer. With the $8,000 tax credit for buying a home before December 1st, interest rates around 5% and a wide selection of homes to choose from, I am not sure there is much more than can make it better. If you are planning on staying in a home for about 5 years or more, it doesn't matter much if the market still goes down a bit before it goes back up, because you need housing of some form. You can pay rent and be guaranteed you won't get that money back, or make a wise investment with many financial benefits that will likely give you a return on your investment. You can check out a Rent vs. Buy calculator to see what option is really best for you (see link)
Most forecasters read historical data, agents out on the street are in the middle of tomorrow's historical data.
We may not be in the bottom but with inventory dropping, multiple offers with buyers bidding over the asking price.......hmmmmmm, well if we are not in or at the bottom, sure is going to be interesting to see the next few months.
No this is not the bottom. No one can predict accurately. But, by opinion of very raesonable forecasters - beginning of 2010.
This does not change the fact that prices are low, selection is great - if a buyer finds a house that he/she likes and price is right - BUY IT. Prices are not going to fall that much more and financing is not going to be much better. Of course - this note applies to a buyer who wants live in the house and not to an investor.
George in Tucson