Is It A Good Idea to Buy A Home When Prices Are Falling?
Are you planning on buying a home in Southern California or elsewhere in the United States? If so, you’re making a smart choice!
Depending on when you’re reading this article, home prices in the Real Estate market may be falling and this could lead you to ask if you should consider buying a home when prices are falling.
In this article, we will answer this question and provide you with tips on how to buy the right home even when home prices are going down.
Are Prices Falling or Is the Market Crashing?
The first thing to ask yourself before buying a home during a time when prices are falling is if prices are falling due to normal market activity or is the market is actually crashing?
From 2007-2010 we saw the market crash nationwide and prices hit rock bottom. Sadly, in some areas like Detroit Michigan, prices never fully recovered.
When you see that the Real Estate market is actually crashing, the smart thing to do is evaluate the situation and determine if it’s the right time to buy a home especially if you’re ready to “buy right”.
“Buy right” means that if it’s a good opportunity, the down payment is there, and your finances are solid, then you shouldn’t hesitate to buy a home especially if you’re comfortable with the monthly payment and see yourself living in the home for the next five to eight years.
Don’t Wait for The Perfect Moment to Buy A Home
As of August 2019, we’re seeing a stable Real Estate market nationwide, especially in Southern California.
Yes, the market has had a correction in the last 12 months but the good news is that it’s stable and the activity that we’re seeing can be considered to be normal.
Although some people may be recommending that you wait to buy a home until prices drop, the reality is that you shouldn’t wait to purchase a home because there may never be a better time to make your home purchase than right now, especially if you want to build your net worth.
Thanks to recent statistics, we know that the average net worth of a tenant in the United States is just $5,000 while the average net worth of a homeowner is $238,000.
Throughout the last 100 years, Real Estate has been one of the absolute best ways to build wealth both in the short term and long term, so if you are able to “buy right” when a good opportunity comes up, you shouldn’t hesitate to buy a home.
Contact the Fred Sed Group
If we can assist you in any way when buying a home contact, us seven-days-a-week by calling us at (800) 921-9231 or connect with us online.