In some cases yes but in other cases probably not likely.
Now is the time to buy depending on your situation. Now is not the time to buy if your situation doesn’t require purchasing a home. The smart money says don't try to call the bottom but rather look for a "margin of safety" in your purchasing decision, which is to say, what is the property's "intrinsic value" (rent vs. total cost of ownership on a monthly basis) and then try to get it at a price below that break-even point. I don't like to think of myself as pessimistic - more of a realist. I'd rather tell my clients the truth about what's going on in the market - no matter how bad it is.
In my view it really depends on each individual person's situation. Properties are still selling here in WNY when they're priced right. If not, they sit like everything else.
People are still scared. They listen to the media instead of performing their own due diligence. Remember the old adage: "Be greedy when others are fearful and fearful when others are greedy." It’s nice to know that in Western New York our market didn’t change when the real estate market went crash in the past few years.
The best time to buy is NOW for so many reasons. The great interest rates are just one of the reasons. The prices have come down to being affordable and there are a lot of homes to choose from. Sellers are more likely to be open to negotiations. There will be a time when you can tell your grandchildren, "I could have bought that house in 2011 for $------------- (Great Price) and for rates under 5%." The rates have recently gone up slightly but when they go up, the buyers can only qualify for a less expensive home. When the economy gets better, the rates go up. Buying a home is a great investment. Over the last 10 years, many people have lost money in the stock market and other investments but real estate has gone way up over the last 10 years as compared to other investments. Also, the buyer's situation has a lot to do with the purchase. When you own your own home, you don't have to answer to a landlord and it’s a long term good investment. A home is also where you can raise your family, make memories and you don't have to pay off someone else's mortgage by renting.
So is now the time to buy? Here is the answer in a nutshell- It will never be the best time for everybody to buy- It will always be the best time for somebody to buy.
To conclude
It depends on your personal situation and your particular market. If your financial situation is relatively stable and you are likely to remain in your particular neighborhood for the long term, then you are very likely to find yourself 5-10 years from now extremely glad that you bought your WNY home in 2011 during the downturn.
If you should have any questions regarding this topic or any other real estate topic from this blog please feel free to send Mark Key a question from the Q&A Ask a Question BOX at the top of the page I promise to get back to you as soon as possible
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