I have been reading a lot of conflicting news about the housing market. Some experts are hopeful, others are not. Can we still draw some useful conclusions? What conclusions, about the home market can we draw from the experts?
1) The status of the home market is… local.
It could be sunny and seventy in Denver while it is the storm of the century in the mountains. (Though, probably still sunny, even during a storm). Just like the weather, the state of the housing market is very local. One neighborhood may not have a single home for sale, another may seem like the entire street is in foreclosure. There are neighborhoods that are still enjoying a healthy real estate market. Unfortunately, there may be more neighborhoods that are not.
When making your home purchase decision, get information on the specific neighborhood you are interested in. It could be very different from the state of the overall market.
2) Is it a good time to buy…it depends.
From reading all the experts, the bottom line is purchasing property is very personal, and depends very much on that person’s status, case by case. Finances, job security, motivations are different for any person. It is difficult to find an expert that says “Nobody should buy.” Or “Everyone should buy,” at this point.
3) We are in a recovery…a double dip… a recession…? It will all be over soon…later…never…it’s already better?
You can find a qualified expert with any combination of the answers above. Depending on whose interests the expert is looking after, the data they are analyzing and their beliefs, you may hear that we are in recovery now. Or you may hear that it will be years before we start to recover. But, there are people getting jobs. There are people losing jobs. People buying, people selling.
4) While the overall status of the economy is important, the most important status is…yours.
On the question of whether or not you should buy a house, the most important expert is you. Whether we were in the healthiest economy of the century or the deepest recession. In other words, if it were a great time for “people” to buy, it does not mean it is a great time for me or you to buy. Conversely, if it is a “bad” time for “people” to be, it does not necessarily mean it is a bad time for “me” or “you.”
While the overall house market is certainly important, “your” house market should trump. How are your finances? How is the house market in your neighborhood? What are your motives for buying a home?