Patch Blog: Has the Market Stabilized? ? Is it a Good Time to Buy?

We are living in uncertain times. You turn on the news and hear that unemployment is over 10% in most states, and in a few like Michigan, closer to 20%. It sounds like a vast number of people are missing house payments or ready to have their homes foreclosed. An exaggeration, but it is happening.

However, how is this directly impacting your life? If you have a relatively stable job (I know no one is exempt) and are financially solvent with money in the bank, what is your concern?

Normally your biggest question is, “If I buy tomorrow, will the value go down another 10% in the next year”? Our Market Trend report shows that over the last   3 months prices have begun stabilizing. Usually that means that as supply and demand shift, property values will start going up. Is there a guarantee they will do so and that this will continue every day of every month, or that values will begin rapidly appreciating? No. But, the economy is showing positive signs of growth.

So, if I buy a home now, what if the economy gets worse? Yes, that can happen and there are some economists that are predicting that. However, the majority of economists are not. In fact, they are saying that because some people chose not to buy in the last 2 years, there is now a pent up demand for homes. Smart buyers realize that the market has begun to stabilize and are purchasing. Interest rates are at a 50 year low. That alone should motivate most of the buyers. There is more to choose inventory to choose from right now due to the time of year.

Bottom line, yes the market is healthier. Yes, it is a great time to buy. The BIGGEST question for you should be, “why are you buying and how long do you anticipate living there? If you intend to live there for at least 5 years, that should carry us through this cycle.  Historical data shows real estate is the highest return investment you can make. We all know it’s not the stock market now!!