After reading the article, “How to Tell if Your Housing Market Has Hit Bottom” from The Wall Street Journal, I thought to myself;
“Wow, if I could predict when the market would hit bottom I would be a very rich person.”
Even the best of economist and Realtors® alike can’t pinpoint the exact moment prices will turn around. So how does a buyer know when is the best time to buy? I say the best time to buy a home is ….drum roll please…
When you are ready. Tada!
If you have the funds and are able to qualify for a mortgage, playing the timing game ( in this market) seems frivolous. Of course I’m not speaking to investors; I am speaking to the family who cringes every time they write another $1,500 check for rent.
With that said, I do believe a home buyer should be informed about where they buy. The article does make a few good points about how to tell if the community you are considering is “healthier” than others.
- The housing market should always be considered locally. The media only conveys the national message and your market could be very different.
- Jobs, Jobs, Jobs. There has always been a connection between the local jobs picture and the local real-estate market, but it’s even greater today.
- If home prices are more than 15 times annual rents, then a market favors renters; under 15 times, buyers.
- Healthier communities have fewer foreclosed properties pulling down values of other homes.
Even the Wall Street Journal cautions, “Don’t look at these as housing-market “winners,” and don’t go looking for new places where you can score a killing….Housing isn’t an investment like stocks or bonds and shouldn’t be approached that way….most are just nice places to live, places where anyone might want to work and raise a family.”