Home Prices Still Declining, Is Now A Good Time To Buy A Home?
“There are still housing price declines in many parts of the country. There’s still a lot of foreclosed property that has to go through the process to a distressed sale. When properties are sold through a foreclosure or short sale, they’re sold at a discount which keeps housing prices down. It’s expected that there’s still another six to twelve months of price decline before we see a true bottom in national housing prices. Some areas of the country will do better naturally, but on average most parts of the country is not done seeing housing price declines.” Mark Zandi Chief economist, Moody’s
There are parts of the Pacific Northwest and areas of California that are seeing stabilization in the housing market. Property values right now are getting closer to normal there where as in the Cleveland, Ohio area, we saw less of a price hit due to our prices already being more normal than most cities in America. There’s a price correction happening and appreciation isn’t skyrocketing anymore on a false incline.
30-year fixed rate home loans are cheaper than they’ve ever been. The rates are fantastic. If you’re able to get a home loan and you’re considering buying, you need to make sure it’s the right time and move for you.
A smart home buyer right now needs patience. Your own personal financial situation will determine if you’re ready to buy or not, not the housing market, the neighbors or what friends/family is doing. If your FICO score is 750 or above, you’re in the perfect position to get the best rates. It may take some time to save for a down payment.
Live like you’re buying. If you’re currently renting a home and your rent is $800 a month, live like you’re paying a mortgage of $1,200 and save that additional $400 a month. Also save for repairs just like you would if you owned a home. Pocket additional money each month and live on a set budget. Pay attention to what your landlord is doing to the property and pretend it’s you making the repairs or upkeep. This will give you an idea of additional expenses that you will face down the road. If it takes you a year to save the 20% down, that’s fine. Be patient. Ideally, 20% down is what your goal should be so you’re avoiding PMI (private mortgage insurance added to your monthly payment for loans with less than 20% paid off/down payment.)
So if you currently own a home, expect to wait a little longer before you start to see your property value maintain or increase. If you’re a home buyer or renter on the fence, now may be the best time to buy a home in history if you’re financially and personally ready to make the move. Make a wise decision and don’t just jump into the real estate market because it’s what everyone else is doing or because home prices and interest rates are low. You still have to make sure you can afford it, you’re ready for the commitment and responsibility, you have your down payment and your credit score is where it needs to be.
If you need information on obtaining a home loan or just have questions about where you stand credit score-wise, Contact Us Anytime. Our RE/MAX Realtors in Ohio are the best in the business. For home buying or selling guidance, we’d be happy to assist you or someone you know.