Should I Buy Now or Wait?

Has San Diego’s real estate market hit bottom?  Is it too late to lock-in a historically low interest rate?  When is the best time to buy?
Newspaper headlines, real estate blogs, friends, family and neighbors influence buyers’ opinions as to when is the “perfect” time to buy.  There is not one lightening bolt moment that announces it is a perfect time to buy a house.  If hindsight eventually proves that you were one of the fortunate buyers who timed your home purchase perfectly (months or years later when the economic gurus pinpoint when the bottom of the market actually hit), it will have been part happenstance that made your move so brilliant.

Buyers should focus less on timing the market perfectly with their home purchase and focus more on finding a home that is perfect for them. Given all the conflicting external inputs regarding today’s real estate market, here are a few rules of engagement for buyers to consider:

  • Sellers are more aware of market conditions that guide buyers’ decisions and are therefore more appreciative of qualified buyers. Translation: Sellers are more likely to accept your offer if you’re able to make a down payment of 20% or more and provide a pre-approval letter from a financial institution validating your purchase ability.

List prices today are more in line with market prices. Today’s Sellers are most likely “real” sellers as they have come to the conclusion that there is no point in selecting a high list price just to see if the market will bite. Buyers will not bite if they are aware and knowledgeable of neighborhood klonopin buy online sales activity, and more often than not, won’t even bother looking at an overpriced house. Good agents advise Sellers to price “at market” in order to attract qualified buyers.

  • Interest rates nudged up recently, so the likelihood of historic low interest rates heading for new record lows is unlikely. Again, focus on finding the home that’s perfect for you, then lock-in the best interest rate available. Don’t beat yourself up if it is ¼ point above what you might have secured 6 months ago.  The slight difference in the interest rate will become financially negligible over time as you enjoy the satisfaction of having bought your home at a decade’s low purchase price. What’s important is that you find the home that fits your needs.

For those buyers waiting for a very specific property, such as an historically designated house, a beach front gem, a fixer in a good location that justifies the investment to remodel or any other narrowly defined choice, you may have to wait a few months for your agent to locate just the right property.  Start that process now!  Generally, it might take up to six months for a possibility to present itself, so don’t procrastinate.

The buyer oriented real estate market is predicted to last through 2010. All signs are go for you to make an excellent financial investment, one that will qualify you to give advice to friends, family and neighbors for years to come. . . from the front porch of your “perfect” home!

Contact Us

  • Janna Hernholm,
  • CA BRE # : 00841932
  • Melissa Hernholm,
  • CA BRE # : 01253708
  • Matthew Hernholm,
  • CA BRE # : 01874558
  • 810 W. Washington Street
  • San Diego, CA 92103
  • P: 619.299.4272
  • E: janna (at) hernholmgroup.com

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