What will prices do? The market has softened, especially for new construction. But where is the bottom? This is very hard to predict and might not work. Buying a house is not like investing in the stock market. Most of us are not trying to day trade houses. Most of us buy and sell for a reason. We are being relocated for a new job, down-sizing when kids leave home, just buying a home to live in where you can paint the walls any color you want.
What to think about if you are a bubble sitter
What is going on in your market? What have prices been doing in the are you are looking at? How long does it really take to sell homes in that area? Knowing the facts of what is occurring in the market you are looking to buy in is crucial. Not having the facts, the acutal numbers, to compare to does you no good when making a decision.
What are interest rates like? Interest rates are still historically low. Over the last couple of months, interest rates have leveled off, but this does not mean they won't change. Buying a cheaper house with a higher interest rate will not necessarily save you money in the long run.
What are you motivations for buying? Why do you want to live in a house? This is a pretty fundamental one, but one that I think a lot of people forget about.
What is your time line? If you are thinkig of buying and living in the home for 5 years or under, you may want to see where the market goes. If you are looking to be in the home for 5 years or longer, you will be in the home long enough that these bumps in the market will even out over time.
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