I’m Just Gonna Wait Out The Market Before I Buy a Home
Buyers who think they “know the game” might want to think twice before they wait for a deal.
For the past (almost) 30 years that we’ve been in business, we’ve seen plenty of real estate trends. We’ve seen prices jump unnaturally high on at least a few occasions, and we’ve seen the bottom fall out as well. We’ve seen good, honest, hard working people lose their homes; and we’ve seen some of them recover and bounce back into home ownership.
The real estate market isn’t unlike the stock market…With exception of one distinct difference: Despite these short term ups and downs, in the long run, it’s the best investment you can make. Since 1998, homes in the Santa Clarita Valley have risen year over year a little more than 6 percent on average. This includes the downturns that took place beginning in 2007 that lasted a few years as a result of the “Great Recession.”
Some buyers have a tendency not to think “long term.” Rather, they look at the trends that are happening right now, without considering the context of their own wants and needs when it comes to investing in property. So they wait…and wait…and wait…for what they think will be a better deal.
The Problem With “Waiting Out” The Real Estate Market
First of all, if you’re thinking of waiting it out before you even have a plan in place, you may be making one of the biggest financial mistakes of your life. Buying a home is not like buying personal property. You may have at least once wandered onto a car lot to look at the latest models without thinking you’d buy anything, and a few hours later you’re driving off the lot in a new car! But as an investment, you’re going to want to put a plan together. Here are a few things you should ask yourself:
Do I want to buy a home?
Whether you currently own, or are renting, you should really ask yourself this question out loud. Are you happy where you are at? Do you want to move into another place?
Can I afford to buy a home?
Do you have the financial means to jump into home ownership? Can you qualify for a home loan? Do you have enough cash on hand to cover expenses like closing and moving costs?
What do I know about current market conditions?
This is VERY important!! So much so that we used two exclamation points! What DO you know about current market conditions? What are the current interest rates? How quickly are homes selling? At what price are homes going for in the area I want to live in? What are the demographics pertaining to median income, job availability, crime, and current/future growth for the city or area I want to move to?
The last set of questions are which you should ask not only yourself, but a real estate professional. In our case, we know those answers, and can provide you with the proper guidance in helping you to make your decision regarding when you should make your purchase.
We are your real estate advocates!
We are here to help you realize all of your real estate goals! Contact The Elgin and Pilar Walker Team for a no obligation consultation.