But given the instability in the housing sector and generally tightening credit landscape, I'm wondering whether I should buy now or wait several months, maybe even a year, to see where the market settles. What do you think?
Answer: I don't recommend trying to time the housing market any more than I would timing the stock market. So if your aim by holding off is to try to get the best deal by buying just as prices have hit their low. I think that's unrealistic and risky.
After all, even assuming you can figure out the ideal time to buy - that is, when prices have hit not only hit a trough but are on the verge of rebounding - by the time you find the house you want, line up the financing and close the deal, the "best" time may have already passed.
That said, given current state of the housing market, you certainly don't need to be in a rush. House prices are already down 16 percent from a year ago.
Perhaps the Bush administration's helping Fan Mae and Fred Mac will help borrowers facing foreclosure, and may limit the damage somewhat. But I don't think anyone believes prices will rebound in a significant way until 2009 at the earliest.
This is just a broad-brush picture. But the national housing market is really a collection of many local markets, and the prospects can vary considerably from one local to the next, depending on such factors as how hot the market got, the local employment picture and the volume of inventory and potential foreclosures.
As I said before, you shouldn't feel under any pressure to make an immediate move. But when the market starts to change it will be to late. If you see some houses you really like and feel you're ready to join the ranks of owners, you want to make the most of what is now most certainly a buyer's market. I believe in our local Flagler County market we have some of the best deals out there today.
Tips
Find out what comparable houses have sold for recently and then consider starting your bidding at 10 percent to 15 percent below that price. Don't be surprised if the owner doesn't fall at your feet and thankfully accept your offer.
Even in a down market, many owners have inflated notions of the value of their home and will stubbornly stick to an unrealistic price. So if you want to pick up a real bargain, you've got to be ready to walk away and go on to another listing.
Generally, you'll have the most leverage when the owner is under some pressure to sell - a looming foreclosure, a job relocation, a commitment to purchase another house, an investor looking to escape burdensome carrying costs, etc.
On the other hand, you don't want to overplay the haggling game and end up losing out on a great house for the sake of a few thousand bucks. For more advice on how to get the best deal, I suggest you check out www.RealtorRj.com or just give me a call.
Let me help you save your time and money. I can't wait too help you in making your next big DEAL.
RJ Elsbree
The Selby Group (386)569-1913 WWW.RealtorRj.COM