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We often hear the question, “is this a good time to buy”.  It occurs to me that what is really being asked is, “are prices going to go down further?”  We know that buyers have been blessed with low mortgage interest rates and the first time homebuyer tax credit, which was recently expanded to include “move up” buyers.  We have heard so many times in the last 12 months that now is a great time to buy. But is this true?  So when is the right time to buy?

In my opinion, the right answer is that the best time to buy a home is when you are ready, willing and able to buy.

Let’s examine those three points:

1.     To determine if you are “ready”, ask yourself why are you considering buying a home?  Is it reasonable to think you will be able to live in your home at least five years?  Have you explored the pros and cons?  Homeownership is a huge responsibility that fortunately has many rewards, not the least is that you will be building equity for your future.

2.      Are you “willing” to take on the responsibility of homeownership?  Like all things worth having, homes require maintence and attention.  A side benefit is that you can bring your own “sense of style” to your home.   You can own the experience.

3.      A prime consideration is your ability to buy.  Are you planning to move on or are you willing to stay put?  How is your job and income stability? What about down payment, credit and ability to make the payments?  All this and more makes up your ability to buy.

If you decided that you are ready, willing and able, what about market conditions?

Let’s start with interest rates; during the past two years, buyers have been very fortunate with low interest rates in the high 4's to mid 5's and the first time home buyers tax credit, which expires at the end of April. 

The Federal Reserve implemented a plan to help keep mortgage interest rates low. It was a way to keep fears out of the market and stimulate the economy.  That was the original plan. What is the plan now?  If we are to believe what we hear from Washington, this plan will come to a halt by the end of March.

Another market condition is housing inventory.  Available inventory has been shrinking over the past year as investors and first time buyers purchased low priced bank owned and short sale homes.  So what does it all mean?   It means you have to be ready, willing and able. In other words, committed to the process.

 So is time running out? Of course not, whther the market is contracting or expending, whether rates are up or down, people  buy homes. Whether to buy or not should come with careful consideration and planning.  And part of this planning should include real estate and mortgage professionals. You should not just buy because you could get a tax credit or because mortgage rates are low, you should buy a home because it makes sense as an investment, it provides the kind of shelter you want for you and your family and it brings enjoyment to your life.

If you are waiting for rates or prices to drop further or are hoping for another extension of the tax credit, let’s face it, you may be “able” but are you really “ready and “willing”?

Buying or selling a home is serious business.  In these complex times, I am always available to answer your questions or discuss you concerns.  Simply call, text or email me for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information,  market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.