Waiting for home prices to bottom out?

Are you thinking of buying a new home, but waiting until prices hit rock bottom? Here's what Brad Blackwell, of Wells Fargo Home Mortgage, guest speaker at the recent housing forecast event, has to say about that: "Never try to time the bottom. You're going to miss it."

You can try, of course. And you may even get lucky, but the fact is that no one can tell you when we've hit the bottom until we are on our way back up. There are simply too many factors at play for anyone to make an accurate prediction. That's why you can find experts with years and years of experience in the fields of banking and real estate who will give you wildly different estimates of when the current trend will reverse itself. In the end, the best time to buy is when it's the best time FOR YOU.

If you (that is a plural or singular "you") have a reasonably secure job with a steady income, good credit and money for a downpayment, this is likely to be an excellent time for you to buy. Why? Prices have gone down, interest rates are still low, sellers are more willing to negotiate, and there is lots of inventory to choose from. And much of that inventory is of a higher quality than in the past because so many homeowners withdrew equity from their homes to remodel them in recent years!

There is a lot of fear in the marketplace right now. Many buyers have adopted a "wait and see" attitude. If you are ready to buy now, that can work to your advantage because there is less competition for the home you want. Those who wait until everyone else starts moving back into the market will face increased competition and therefore, increased prices!

Many buyers also back off during November and December because of bad weather and holiday bustle. Again, if you are ready to buy now, and choose not to wait, you are likely to come out ahead of the pack and save a significant amount of money.

If you are thinking that this information is all somewhat self-serving on my part, you are right! NEVERTHELESS, IT'S TRUE! In this case, what is good for me is also good for you. We all win! And that's just the way I like it.

Please give me a call today, and let's talk about how I can help you achieve your dream of buying your first -- or next -- home. 206-708-9800 Alice@AliceKuder.com