I know that headline sounds like a line of insincere marketing hype. Unfortunately, in our business, someone is always saying "It's a great time to buy a house".
LET'S FACE - IT'S NOT ALWAYS A GREAT TIME TO BUY A HOUSE!
In an "UP" market when inventory is low and prices are high, you will likely find yourself in a bidding war if you are interested in a desirable house. Bidding wars are great for sellers - not so much for buyers. That's why they call it a seller's market.
A buyer's market exists when prices are down and inventory is up. If you add in the third piece which is Interest Rates, you get the perfect storm.
Right now:
- Inventory is at an all time high and all indications are that it will continue to rise because, sadly, the unemployment situation is expected to add to the already high level of foreclosures that are out there.
- Prices are at a level where they were prior to the boom of the early part this decade.
- Interests rates are - well, they're just ridiculous!
Any two of those three things would make things ripe for buyers - having all three in place creates a situation that simply makes it darn near a sin for qualified buyers to sit it out any longer.
The other thing that makes it EVEN better, is that most home sellers are beginning to understand the market. In the last few months as I show houses to buyers, I find that more and more of the listing prices are very close to market value. This makes the whole buying process simpler. The truth that the sellers are realizing is that although they may have to sell their homes for, perhaps 20 - 30% less than they may have paid a few years ago, they will get that savings back as they buy something else with the same kind of depreciated value.
As Realtors we often have buyers tell us that they are "Waiting the market out". The question I usually ask is this
Which are you waiting for,
INCREASE IN PRICES or INCREASE IN INTEREST RATES?
