Is now really a good time to buy?

Asked by Joon, 95132 Sat Aug 25, 2007

I've been looking for homes in North San Jose and prices don't seem to be going down because the inventory is so low. When anything pops up, it's gone in a week for a generally high price. At the same time interest rates are pretty high, even for conforming loans (and ridiculous for jumbos). Since you can't seem to get a break in the price and since rates are high, this seems like anything but a buyer's market. Is now really a good time to buy or should I wait a few months or even a couple of years?

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The Hagley G…, Agent, Pleasanton, CA
Sun Aug 26, 2007
Joan- Are you a first time home buyer? There are a ot of great programs still avalable.

I am wondering what your source is for interest rates? They are still low...although a bit higher than during "the boom." It wasn't that long ago that folks were paying well into the double digits!

It's a perfect time to buy real estate. Rates are still relatively low, and if you're a renter, you rents will only go up. Don't forget the tax advantages of home ownership.

It's a great time to buy. Find a good Realtor to guide you. Good luck!
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3 votes
Jay, Both Buyer And Seller, California
Mon Sep 3, 2007
Buying only makes sense if the monthly payment matches up with what you can rent the same house for; the Realtors mainly hold the prices "High" on houses that are For Sale...they are trying to get the max $ in the shortest period of time for the Seller. To get a good deal, you would really try to locate a very highly motivated Seller and lease to buy/ or create your own "deal" based upon several inspections and the use of an "independent" title company to Close the deal. When the Seller uses "Friends", you know that they will be on the Side of the Seller.
Loans are nothing but Green Money; it has turned into a scam with front end and back end charges (you can easily get it both ways coming and going). The Loan Programs that create low monthly payments so that you can lose your equity over time are just there because the house prices are too high in the first place. One feeds off of the other.

Bid LOW until you find a Motivated Seller!!!
2 votes
Lee Taylor, Agent, Charleston, SC
Thu Aug 30, 2007
Yes. Ask any serious investor.
2 votes
Bruce Lynn, Agent, Coppell, TX
Sun Aug 26, 2007
Timing the market is like predicting the future. If you or I knew exactly when to buy or sell at the top or bottom of the market, we’ll we probably wouldn’t want to share our information. You might wait for lower prices, but what about higher interest rates? The people with low credit scores who waited to buy a few months ago, might not be able to get a loan at all now. I think there is no perfect time to buy, but if you’re thinking about it do it. Buy to coincide with the end of your current lease. Buy because you plan to stay a while. There are tax benefits to think about and leveraged appreciation to consider. What will make you happy? Or your family happy? If you wait, when will you know the time is right? I say buy now if you’re ready to buy, don’t wait. If you need a good Realtor to help walk you through some of the consideration just let me know and I’ll be glad to provide you a good recommendation.
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2 votes
Monir Mamoun, Agent, Denville, NJ
Fri Sep 24, 2010
Hi Joon, I have written a four part blog about whether it is a good time to buy. It is updated for recent information, but also goes through the general process of making that crucial decision. I have referenced the link below for your convenience. Please check it out and leave comments!
0 votes
Mr.P, , Arizona
Tue Sep 4, 2007
Interest rates will come down another .25 to .50 the way things look on Wall Street. TODAY.
As far as Interest rates go. My first house in 1990 was a 15 year @ 9.90%
I remember my parents paying points in the late 70`s to get18%. Just so you keep things in perspective.

North San Jose is one of the few places that has activity. Sounds like a popular place, sounds like a good investment., Remember Location is king. When this market recovers North San Jose will lead the way.
now is the time to buy
0 votes
Sean Murphy, , Los Altos, CA
Tue Sep 4, 2007
Working from the basic economic principle of supply and demand, real estate is, has, and will always be a very solid long term investment. The population is continuously growing, while available real estate is essentially static in supply. Trying to buy your home at a low point in the market is obviously ideal, but don't fool yourself into thinking that you or anyone else can accurately predict when this is. While most of us tend to see the oppurtunity a slowing market brings, when it booms again, buyers who waited for the absolute best deal, very well may have put themselves out of the market all together. Saving money is always great, but waiting can just as easily cost you. If you are a gambler, this may seem like an attractive "game." Is the potential to save money on the purcahse a smart bet when it could just as easily go the other way? This way of thinking is pennywise, pound foolish. Buy your home because it is the right time for you personally, not because of something the news media is telling you. Everyone else watches TV, too. Keep in mind that there will always be a pool of experienced investors, with available cash, that wait to buy homes in solid markets when the market slows. Barring some catastrophe, these people will pick up the slack, and to assume that prices are going to return what they were 10 or even 5 years ago is bad business.
0 votes
Denise Stuart, Agent, San Jose, CA
Thu Aug 30, 2007
It depends on where you are looking. I am in Berryessa and yes, if it is a good School in the district, the market is still hot. Remember if you buy in a good School boundry it is also good for resale value, this is why people buy them up so quickly is because no matter what, a school will sell the neighborhood for those family that scury every year to get their kids in a good school.
There is one on Sabal that has been there for a while have you seen it?
I could show it to you if you'd like.
Denise Stuart
Coldwell BankerThe Real Estate People
0 votes
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