Is now the best time to buy?

      Is now the best time to buy?

Interest rates are about as low as they’ve ever been which will make your payments very low.  Though it’s not likely interest rates will go up soon or quickly many are not taking the chance and buying while they can lock in the lowest rate. 

On the flipside, unemployment is high which may force some homeowners to sell their homes.  Also, many middle-class baby boomers are selling their homes and retiring out of state where it’s more affordable to live on a fixed retirement.  This double whammy could produce more homes for sale versus buyers which could lower prices over the next year or two.  After that it’s likely all the government borrowing done today will cause significant inflation causing tangible goods such as homes to cost a lot more.

In conclusion, there is significant evidence to believe home prices will come down over the next 12 to 36 months.  There is also good evidence to believe that after that, home prices will rise due to inflation.  If you plan on staying in your new home 10 or more years and you like the neighborhood, it’s a good time to buy.

If history taught us anything about real estate, it’s prices go up and down over short periods but  always go up over the long haul.