Is Now A Good Time To Buy Real Estate?

It is a question that gets asked in good times and in bad times and, unless you have a crystal ball, the answer is always subject several factors and to personal opinion.

So, if you are a first time home buyer and you keep hearing that the house prices are starting to fall, will the house prices keep falling and do you buy now or wait?

Well, if you do buy now and the prices keep falling, the value of your property will depreciate rather than appreciate therefore you won't be building any equity.

The key therefore is to research the market and watch the trends. Prices may fall or rise depending on a number of factors including: the local economy, the national economy, demand factors, money supply, employment rates, building activity and list goes on.

It is usually a good idea to look at several houses before making a decision to buy. Calculate price comparisons with recent house prices in the area over the last 3 months. Check out new constructions too, the builders may be eager to sell for a bargain price.

Judge each property and area individually. Strike the best deal you can. If you are planning to stay in the home 5 years or more, short term price adjustments or drops may not be of major concern to you.

Remember, it's the location you are buying. If you buy a poor house in a bad location you will unlikely to see any major gain in value. If you buy a mediocre house in a great location you could potentially do well. If you buy a fixer upper in a great neighborhood and put some sweat equity into it, you could again see a lot of appreciation in the value of the property.

Remember too, if the local property market is on the decline, a percentage of the people who have homes for sale will be desperate to sell. If the owner is not willing to bargain or wants what the neighbor sold for last year (despite a downturn), you could consider looking for a better deal elsewhere.

If you do find the house of your dreams, and if it is good value for money, then you might be best to purchase it rather than chase after a bargain that doesn't meet your needs.