Is it wise to buy now?

The risk of buying now is home prices may decline. The economist for the National Association of Realtors recently said we will “"probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory."

If that is the case waiting to buy until the market bottoms out could be a smart move. If you have a good rental situation, waiting is a viable option but it is very difficult to time the market. We will only know that prices have reached their low only when they have started back up.

Buying for the short term is risky in the current market. At the same time this could be a good time to buy for if you plan to stay in the home for a longer period of time. This is truer if the house, features or location is not readily available.

Other good reasons to buy now is the reduced competition from other buyers making it easier to negotiate with sellers and interest rates are still at historical lows.

I build my business by creating relationships and the last thing I want to do is encourage my clients to do something that will make them unhappy. I have several clients who have nice rentals and have decided to wait and look again next year. They don’t feel comfortable buying at this time and I respect their feelings. I also have several buyers who are anxious to buy and we are out looking and making some great deals.