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.

Buy a houseTiming 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.