...The Best Time to Buy a Home... ???

The best time to buy a home

Recent economic reports and the continued decline of home prices have caused some home buyers to stay on the sidelines and try to time the market so they can purchase a home at an affordable price that will not reduce in value, and will appreciate quickly.  However, many housing advisors recommend that home buyers not try to time the market, but instead purchase a home when they are ready.  

MAKING SENSE OF THE STORY FOR CONSUMERS

·     Despite rising foreclosures, delinquencies, and unemployment rates, and declining home prices,   sales of new and existing homes are improving, which is causing some home buyers to try to “time the market.”  Many housing analysts advise potential home buyers not to base their homebuying decision on economic reports, but rather to take their time finding the right house and to focus on getting their financing in place.

 

·     Most economists believe that home prices will continue to decline during 2009.  C.A.R. predicts that the median home price in California will decline an additional 6 percent next year.  Home buyers need to remember that real estate markets are local and prices differ neighborhood to neighborhood. Many REALTORS® advise their clients to visit communities that interest them, and to talk to homeowners, business owners, and financial institutions to become familiar with the area.

 

·     Credit restrictions and loan underwriting standards tightened during the credit crunch, resulting in mortgage loans taking longer to process and fund.  Most lenders are requiring more information about income, assets, and expenses than in previous years, so home buyers are advised to get preapproved for their mortgage loan instead of applying once they have identified their ideal home. (source CAR)