Is Now A Good Time To Buy Property?

Many people believe the current real estate market downturn presents some good buying opportunities.  This is true, but a lot depends on what the motivation is for buying. If you are expecting a sharp increase in value, then you are going to be disappointed. All the indications and forecasts right now show that this is not going to happen for the next year or so. At best, prices will be flat, and they may even go down over the rest of the year.

So why would people want to buy into a falling market? Dean O’Dell says, "Right now is actually a really good time for either move-up buyers or those looking to get onto the property ladder. For those looking to move into a bigger home, falling house prices are not a disaster. Although they will get less for the home they are selling, they will save on a property they are buying, and proportionately this will be a bigger savings. However, for those downsizing, the sliding property prices are not good.”  Additionally, lower interest rates are providing buyers with more purchasing power with current prices where they were in 2003.  With the combination of these two factors, homeowners can actually have the same house payment they could of a decade ago.  Realistically, people should focus less on paying the bottom price, and more on the costs to own a house.

2011 is definitely a buyers' market and is likely to remain so for the time being. For those who are in the position to buy a property right now, should certainly make the most of this opportunity, especially all cash buyers.  Don’t wait too long! If you plan to live in your home for a while, or as a long term investment, then the modest price falls over the next year shouldn't make much of a difference. The bottom line, if you want to buy low, buy now.  It appears housing prices have hit the lowest point.