With the fall of prices, is it time to buy a house?
According to a recent appearance on CNBC, Donald Trump stated, “Housing is one of the great investments right now. I tell people all the time when they come up to me, they say, ‘What should I do, Mr. Trump?’ I say go buy a house.”
Warren Buffet’s recent declaration that if he had a way to manage them, he would buy a couple hundred thousand single family homes and rent them out. Housing seems to be rated as the right thing to buy as of late, especially among investors who see a rising rental market and big income potential.
Apart from investors, is this a good time for “organic” buyers to buy a house? This meaning, people that are buying a home to live in it, raise a family, and hold onto it for a while. Yes!
Around 73% of the homes sold in January were priced below $250,000, according to the National Association of Realtors. 47% of homes sold that year were either a short sale or foreclosure, where the lender is allowing the house to sell for less than the value of the current mortgage on the home.
Timing the housing market is about as difficult as timing the stock market. While housing moves far more slowly, it works to your benefit with prices not changing on a daily basis or from major events. Sales clearly have bottomed in housing and prices always delay sales but they will come back. If you cannot get a good mortgage now, maybe it is not your time. However, if you can, don’t wait as this is the time to buy a house.