Every time you open a newspaper or turn on the television, you hear about the horrible state of the housing market. It is enough to scare any inexperienced home buyer away from potentially great deals. The media fails to emphasize that it's a buyers' market out there. Now is the perfect time for buying real estate, especially in California.
In real estate, timing is everything. Right now, the market is currently in crisis, but it is the kind of situation that will actually benefit a savvy buyer. Housing prices are plummeting thanks to the current mortgage crisis, which means that a smart home buyer has lots of leverage. It is not unusual for homes to be on the market for a year or more, making sellers eager to make a deal.
Now more than ever, opportunities exist to buy homes for great prices. When you save on the initial investment, the home will make you more money over time as it appreciates in value. The old adage "buy low, sell high" is wise advice for anyone looking to buy a home right now. Remember that houses are long-term investments and the payoff is even better when you get a great deal. In California especially, housing is always a wise way to invest your money.
Will prices fall even further? You just can't be sure. Waiting for prices to drop even lower is a gamble. If rates spike, you'll end up paying more. No one knows what the rates will be in a few months.
The current drop in prices represents an effort on the part of sellers to move their properties quickly. Most sellers that list their homes in winter are motivated. Look at the current conditions like a clearance sale. Prices will likely stabilize soon, but for now, there are great homes available for much less than they would have a couple years ago.
In the coming year, lenders will likely tighten up their standards for home loans. Last summer, banks would push through nearly any mortgage. Their haste to make mortgages happen is one reason for the current crisis. Consequently, lenders intend to make their standards higher in the future. If you are looking to get a great rate without hassling over qualifications, now is the time to buy.
If you are currently renting, you are just paying off someone else's mortgage. In many parts of California, monthly rent payments are nearly as high as mortgage payments. Instead of improving your landlord's net worth, improve your own by buying a home.
Housing bargains abound with foreclosed houses and people looking to escape their high-interest mortgages. The available inventory of homes to choose from is staggering. Therefore, sellers are looking to make a deal. Instead of thinking that you should wait to buy, it is wise to look at the situation the other way around right now. Buy and wait out the market instability.
If you plan on staying in your home for more than a few years, you will certainly see your investment appreciate. If you get your home for a great price and keep your home in good condition, it is an investment you will never regret.
Author Resource:-
Kari Shea, of Shea Real Estate & Investment Group, is an accomplished business professional and community leader in the San Diego, California area. With more than 45 years of collective sales, marketing and consulting experience; the Group are master negotiators in the marketing and selling of real properties. Learn more about their services at: www.shea-realestate.com.
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