When is the right time to buy a home?
Yesterday came news that the home-price index fell to its lowest point since 2002. It appears that now is a great time to invest in real estate!
Wait a minute…
Didn’t we hear the same thing last month and the month before? Are the people that invested last month suckers?
I’m sure we all know the drill: Home prices go up? Great time to buy! Home prices drop? Great time to buy! Apparently it is always a great time to buy a home. However, we need to take a step back to see what we really need to see.
Rather than considering the state of the entire economy, you should instead consider your personal economy.
Here is what I mean by that:
It starts out with managing your expectations.
- Do you even want to buy a home?
- If so, do you want to live in it or use it as an investment?
- How much do you want to pay?
The third point is really the key. Obviously you have to make sure you can qualify for a home, but once that part is settled you have to determine at what price point you want to pay. That way, regardless if the value of your home rises or drops, you are at the exact price point that you wanted and planned to pay.
If you find a home that you want and it is at the exact price you want to pay, then it is a great time to buy a house for you. Forget whether it is a great time or not for anyone else.
Remember, those that are chasing the “bottom” of the market will always be disappointed. There is no way to tell if the housing market has hit the bottom until it is well past that point.
Set realistic expectations and you’ll know exactly when it is the right time for you to buy a home.