A lot of people have been waiting for the market to bottom out before purchasing a new home. The mortgage crisis has lowered home prices nationwide, and before purchasing, buyers want to know that they stand to gain equity, as opposed to losing it.
Buying a home is an important decision any way you look at it. There are a lot of costs and worries that go along with owning a home. Not only do you need to worry about the house payment, but you now need to worry about paying the character taxes in addition as the danger insurance policy. On top of all of this, you also need to manage the upkeep of the character itself. With all these concerns, the last thing you want to have happen is for the value of your home to decline, despite your taking care of it and keeping it properly maintained.
So, it is no surprise that the question of the real estate market is such an important one in the home buying decision course of action. Nationwide, home prices have fallen by more than 20% in the last three years. Between record unemployment, lending fallout, and bank failure, foreclosure rates have risen to all time highs.
This scenario is destined to make buying a home a prettier picture at some point. But, in order for a buyer to take advantage of the down market, it is imperative that they buy at the price floor. Buying a home has become very similar to buying a stock. Buy too early and you will stand to lose more equity. Buy too late and you will stand to lose some of the obtainable equity that was to be had.
But, calculating a price floor is no easy task. You need to know that the market has started to retrieve before you can comfortable make such a large buy as a new home. It’s for this reason that it makes a lot of sense for new home buyers to be leery about purchasing too soon.
But, where this has become a problem is on the individual level. Every day that goes by, a new news item will come across, describing the horrid conditions of the national real estate market. These stories are certainly accurate, but depending on where you live, they may not have anything to do with you.
for example, a prospective home buyer in one of the hardest hit states, like Michigan or California is probably right to want to continue waiting to buy. California’s economy is on the brink of destruction. New reports come daily about the state considering filing bankruptcy or selling off its office equipment on eBay, or cutting state jobs. Being that California led the housing bubble, they have the most to lose in terms of housing prices, and it’s a safe bet that they aren’t at the bottom in addition. In Michigan, the majority of the state’s income is based on the automobile industry, and we all know how that is going. Every time a factory shuts down in Michigan, more foreclosures are on the way.
But, it isn’t this way without exception across the nation. And for this reason, a prospective home buyer cannot simply look at the national news to determine the state of their local real estate market. Strong buying decisions are going to have to be made with the help of local professionals in your area. Consult a realtor or an appraiser, or both, and find out what their feelings are. This is just too large a problem for you to determine the right answer on your own.