05 May Should You Buy a Home Now, or Wait?
As active real estate agents, we tend to get this question the most, aside from the typical, “hows the market?” question. Should I buy now, or should I wait? When a new client asks us that question, we simply ask them, “if you wait, what benefit will that provide?.” We’ve heard every reasoning in the book, like the market is really high right now, someone said I shouldn’t buy, I heard the market is going to turn soon. These all could be good reasons if you believe them. Every person is different and every situation is different. What you really need to ask yourself is, “am I prepared to buy now?” If you’ve answered yes, then you should consider making the purchase.
It’s no surprise that the real estate market trends up and down every 5-10 years. Just look at the Case-Shiller Home Price Index. It can be found here: S&P Case-Shiller Home Price Index
In summary, the real estate market goes up and down. It’s very unpredictable and there is no way to pinpoint when the exact low of a market is, or when we are at a peak. If you are in a strong position to buy a home, then its a good idea to do it.
Los Angeles is a market that is very strong because where real estate is expensive it will draw first time home buyers to other areas, turning them around, and making them more desirable.
Also, interest rates are extremely low right now and will not stay this way. So if you wait till next year, you may save in the purchase price, but with a high interest rate, you’ll be paying more down the road.