In the last few days, I have heard the following from two buyers I am working with:
- We are going to wait until late summer or the fall to start looking seriously.
- I am going to wait until after the election because I KNOW house prices are going to drop.
Based on what I am experiencing and hearing, I have to disagree with both of these statements. Here is why, assuming you are financially capable, now is a good time to buy.
We appear to be in the upswing in the high/low cycle of real estate. Based on what we are seeing in the current Five Towns area market, it seems that a bottom has been reached in home prices. Of course, a true bottom cannot be picked until well after it is hit, but things do seem to be improving.
There are many more buyers hitting the market each weekend due to the low home prices combined with the low interest rates. This enables you to afford to buy more house than you will able to buy should interest rates increase.
Buying is more affordable than renting. Rents are rising at a faster rate than home prices. Rent is also not deductible; property taxes and mortgage interest are. Check with your accountant to see what the difference in dollars would be to you in buying versus renting. Renting tends to cost more over time.
Many experts are saying now is the time. Warren Buffet says buy real estate now. Chris Thornberg, who called the real estate market crash in 2007, is now saying it’s a great time to buy. The current cover of Barron’s Magazine also says home prices are on the rise.
If you are able to buy now, strongly consider it, or at least open your mind to exploring it.
I am here to help you and answer any questions that you might have on the current market or particular properties in the Five Towns.
A selection of Five Towns Long Island homes for sale. Let us know which we can show you.