It is unlikely that we will see a buyer in a housing market anytime in the next decade, according to top experts. However, most major players are still projecting housing prices to climb, and even if strong building can set more new inventory on the open market, it most likely will not be enough to push the scales completely in consumers’ favor. Instead of looking at these numbers as signs that the economy is recovering, a better focus should be on indicators indicating an indication that the economy is actually in a slump. The time to start making money in the housing market is before the building frenzy slows and prices begin to tumble.
Still, even as sales are hitting an all-time low, they have yet to reach the lowest they’ve been in over three decades. That means that prices are still quite high for most homes, and that a buyer can expect to pay close to or in excess of six percent more for a home than it was just a few short months ago. While it is true that prices will probably not stay this high for too long, sellers should be comforted in the knowledge that it will at least take a few years before prices return to more typical levels.
The slower building pace is being driven by a number of factors, including the slow recovery from the recession and the ongoing effects of subprime lending mispricing on the housing market. Meanwhile, the demand for homes is also slowing down. As job growth slows or becomes less noticeable, more of the available jobs in the United States will be filled by temporary workers. Consequently, there is less pressure to build more homes, leading to higher vacancy rates. This, in turn, could lead to more competition and lower prices.
Even as the inventory does end up rising, there are other indicators that indicate that the slowdown may not last. Historically, the best time to purchase real estate has been in response to an expansion in the economy. In fact, the best time for property purchases has traditionally been right after the end of an economic downturn. In the current environment, there is little reason to expect a sudden reversal in the housing market. It is likely, however, that the slowdown will at least be moderate, if not continue to become more pronounced.
For first-time homebuyers, the best time to purchase is now. There are signs that the home market has reached a plateau, which means prices have dropped to their lowest levels in years. With so many buyers out of work or financially strapped, now is the perfect time to buy. While prices have bottomed out, there are still some excellent deals to be had, and the home buyer can get the house of their dreams at a price they can afford.
For sellers, the best time to sell is right before the market turns. There are many sellers who are having trouble finding buyers, but the pace of the economy has slowed significantly, which means their housing costs are slowly starting to reflect this. Many buyers who are looking for a new home, however, have been put off because of the current state of the economy. If these buyers are able to get into the market earlier in the cycle, their chances of getting a low-cost house are greatly increased.
Another good time to buy a home is right after a boom in home building has finished. Once home building begins to pick up again, there are going to be an increased number of builders in the market. This means home prices will increase at a rapid rate, which will generally make it easier to get a home at a low cost than in previous years. With so many new properties on the market, potential buyers will be put off by the sky-high prices. Once home prices return to more normal levels, home buying will become more affordable.
The most important thing for buyers to remember is that the housing market is never going to return to its previous level, no matter how much caution is taken in the current trend. For this reason, buyers should be prepared to accept lower home prices. However, they should also realize that they do not necessarily need to settle for these lower prices. Even when the housing market does appear to be recovering, there is still a significant amount of competition for available homes. When there is this intense pressure to obtain a home, it can often push the price of a house higher than what is really affordable for the average buyer. It is best for real estate investors to focus on finding those situations in which home prices are reasonable, rather than trying to secure every available home.
Is Now the Right Time to Buy a Home?
