The media is saying that the market is slow, and people should wait. Why? Here's the problem with their theory:
1. How do you know how low it will go? (boy, that sounded like Dr. Seuss!) You will only know when the market picks up, and prices are not declining. How long does it take for this information to get to you in the media? At least a month. They wait for statistics from the NAR, and those reports are created monthly. So let's say you want to buy at a low point. By only looking at the media, you will not get in at the lowest point----you will only hear that the market is picking up, and you have missed it.
2. Instead of going to the second source, why not use the source they use? A qualified realtor. Don't ask just one. Interview three of them. We all have statistics, and can provide actual numbers to help you make your decision.
3. Don't just consider the home prices. Look to the interest rates as well. Even if the prices continued to drop and the interest rate rose, you may not achieve a great bargain waiting. This week, Freddie Mac reported that the interest rate for a 30-year fixed-rate mortgage averaged 6.17%, the first decline since early March. At this time, the rate is low because inflation is low in most areas, except in the area of energy.
4. Have you considered your own timing? How long are you planning on staying in an area? Because the market is going back to normal at this time, you don't want to hold the property a short time. You want to keep it for a while so you can see a good return on your investment.
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