Still on the Fence – Unsure if Now Is the Time to Buy Real Estate?

Get off the fence buy a homeWhy Buy Real Estate Now?

Who is buying real estate now? end of 2010. Well according to some recent articles the “smart people”. Who are the smart people – those who I believe have enough confidence and foresight to understand the real estate market.

What that means is those jumping into the real estate market know that home prices may never (in their lifetime) be as low as they are now and definitely interest rates will probably never be lower. These are perhaps historical times. I don’t only say that because I am a Realtor, but because I have experienced the real estate market first hand.

I have seen interest rates as high as 12%. Just looking back a few years to 2003 where interest rates were 6.25% and stayed at that level until 2007. It has just been in the last couple of years in an effort to spur the economy that interest rates have fallen to the 4% range. It won’t last and many know that. That is why there are investors buying up blocks of houses, not just a couple. They can afford to hold and rent them out and in a few years after prices have increased make a tidy profit.

Here in California and specifically in Contra Costa County (where I live), data shows we hit the bottom in 2008 and have been going up ever since. Inventories in certain price ranges have dropped and we are seeing homes sell within three months or less. That doesn’t mean that we will see home prices skyrocket to unrealistic levels as we had in the mid 2000’s. But what it does mean, those in the know and are buying homes now.

This is also a fantastic opportunity for the first time home buyer. You can get so much more home for your money and in areas that may have been out of reach for many. Those sitting on the fence are hedging their bets that home prices may drop lower. Perhaps. But just like trying to time the stock market is next to impossible, it is no different with real estate.

If you are on the fence waiting for the right time, this may be the right time–don’t miss it and say “if only”.

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