I am asked this question frequently and the honest answer is: I don’t know. But here is what I do know:
Market tops and bottoms are only recognized some time after the fact when we can look at the numbers in relationship to current statistics and activity. Hindsight is always 20/20.
I think the more relevant questions are why are you buying , where are you buying and what are the risks if you do nothing?
If your real estate purchase is for investment purposes, the market bottom has more relevance because you may not want to hold on to the property for a long period of time and you need to factor in the cost of carrying the property relative to the amount of time it will take for it to appreciate. A good article to reference on this topic is Determining a Support Level for Southern California Real Estate by Brian Brady.
If this home purchase will be your primary residence you should be considering the costs and risks of staying out of the market! Here are some points to consider:
1 Comments on The Costs and Risks of Staying “Out” of the Housing Market
Don't we all wish we had a crystal ball!?! Unfortunately you're dead on, the only time we see the bottom of the market is in th rear-view mirror and by then you lose all negotiating power since most all buyers have flocked into the purchase arena.
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Ana Connell
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Don't we all wish we had a crystal ball!?! Unfortunately you're dead on, the only time we see the bottom of the market is in th rear-view mirror and by then you lose all negotiating power since most all buyers have flocked into the purchase arena.