Today’s Real Estate Market
Is now a good time to buy a home in today’s real estate market? That is a question many people are asking themselves with the volatility in all kinds of markets today. What is a good investment? When should I make that investment? When should I get out of the market? When should I get in? Too many questions and not enough good answers and everyone have their own opinion about what has happened and what will happen. One thing for sure the experts don’t really know much more than the well informed customer. The old standby indicators no longer work as seen by the bubbles that have burst over the past couple of years and the swings in the housing and stock markets.
With today’s real estate market let me pose a few questions for you if you are thinking of buying a home or condo in the near future. How long are you going to stay? There is a rule of thumb out there that if you are only staying 2 years or less now may not be a good time to buy. The reasons are simple. It costs money to not only buy but to sell and most times you are not going to recoup your costs in less than 2 years. Everyone knows of sales commissions but that is only a part of the overall costs. Costs are not the only thing to think about as well. Most people rely on appreciation when they buy a home and move on to the next. How much appreciation have you seen in the last couple of years? Are you staying longer than the national average of seven years? If you are then buying is a good investment for you in almost any market. You will have time to accumulate equity and realize all the tax benefits from owning your own home, not to mention the pride of ownership which has been a staple of American life since this country was founded.
The real estate market today is possibly the easiest way for most people to accumulate wealth. Three out of four people today have more equity in their home than they have in retirement plans, stocks, mutual funds and savings. No one can guarantee appreciation but given time it generally does so think about how long you plan to stay and what is important to you and your family. Home ownership is a part of the American dream and sometimes dreams take precedence over everything else.
