Did You Already Miss the Housing Bottom?
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Many people have been trying to time the market, waiting to buy when the housing market hits bottom. However, there is an argument that the housing bottom has passed, and that the chance to buy at the bottom was earlier this year. With the Case-Shiller index showing that the housing market is improving (despite issues related to home sales recently), there are some that argue that the time to buy was back in February.
Here is what The Mortgage Reports says about the economy, housing market and when to buy:
But now, as the Case-Shiller Index shows improvement, it’s making a case that the economy is coming back from the brink.
An improving economy will harm home affordability.
Soon, government stimulus will fade, mortgage rates will rise, and sellers will regain the upper-hand in negotiations. Based on the Case-Shiller home value data, the “right time” to buy a home may have been in 7 months ago — while the status of the recovery was still in doubt.
Of course, there are concerns that there could be a double dip recession, with another drop on its way. Indeed, some are speculating that the housing market could dip again next year as government aid is withdrawn and unemployment stubbornly refuses to improve. That could mean another housing bottom that could provide buying opportunities.
If you are planning on buying, though, there is no reason to keep trying to time the market. Mortgage interest rates are still relatively low, and it’s still a buyer’s market. The only thing I’d wait for is to give it a few weeks to see if Congress decides to extend the home buyer tax credit deadline, and expand the program to include those who are not first time home buyers. In the end, you are unlikely to find such deals for another decade or so, and getting in now is a fairly good plan, especially if you are simply buying a home to serve as your primary residence.
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October 29th, 2009 at 10:44 am
[…] or a return to another housing market dip. If this is the case, than it is quite likely that the housing bottom has already passed. If you have been waiting on buying a home, it might be time to reconsider. It […]