I want to buy house but how will I know if it is a buyer's market or seller's market. I want to know if it is a right time to invest in house as the house prices are increasing daily and also the rent is increasing. Thanks for your answer.
2007-02-24 18:00:06 · 9 answers · asked by Cary 1 in Business & Finance ➔ Investing
It depends on if you are going to live there or rent it out. If it is a rental property, I would wait a bit for things to soften a bit more. If it is to live in, then I would wait a bit more.
The housing market is in a huge glut at the moment, and this glut is likely to be there for some time.
Wait for the market to soften a bit more, save more money for a down payment while you are waiting.
Most analysis that I have read has said as much.
My personal take is that interest rates are likely to stay where they are at, and quite possibly higher for some time. This, combined with a few other factors is very likely to keep demand for this large glut of homes low.
Lots of supply, and stable or declining demand is not a recipe for a sellers market and you can likely find a good bargain if you wait for the hard-core sellers to finally realize that they need to reduce their asking price if they have a hope to sell.
BOTTOM LINE:
Wait it out a while longer, but keep adding money to your down payment stash. My best guess is to wait for about 6-12 months. More down+lower asking prices=lower mortgage=more profit from renting
2007-02-28 13:44:23 · answer #1 · answered by Random Guy from Texas 4 · 0⤊ 0⤋
It is a buyers market across most of the U.S. The inventory of houses for sale is higher than normal and the prices appear to be slipping. However you should research the market where you live and find a good location and something you can afford.
Check the website out that I have added a link to below.
Where I am living, renting is far cheaper than buying but you may be in a different area. In any case, offer ten or fifteen percent below the asking price if the house you like has been on the market for a few months - you are looking for a motivated seller!
2007-02-24 18:09:12 · answer #2 · answered by rarguile 6 · 0⤊ 0⤋
The federal reserve has even stated that the housing market has begun to cool.
The environment of interest rates being where they are has turned the market into a buyers market...but it is a renters market in actuality. Meaning it's a good time to purchase property to rent out.
Interest rates are still low enough for you to purchase a place of your own. Remember, if you reserch a property that you love and it's the right price buy it. You'll be paying yourself in equity and will never again be the slave of a landlord. Over time, interest rates will always fluctuate so if in the future you can get a better rate, you can always refinance.
2007-02-24 19:40:53 · answer #3 · answered by Scott O 3 · 0⤊ 0⤋
Yes and No. It really depends which city/state you are living in. I live in a County where house pricing has just dropped maybe 5% and historically has never gone down significantly. In general, my experience is saying this summer will be a buyers market and real estate will bottom out, which means things will slowly start going up in 2008.
If you share the City/State I can give you an even better answer.
2007-02-24 18:13:42 · answer #4 · answered by Mike N 2 · 0⤊ 0⤋
If your credit is good enough where you can rent the property out and you have enough money to handle the mortgage when your renter don't pay, then it's always a good time to buy. You should be able to carry a home for at least 6 months.
2007-02-24 18:07:18 · answer #5 · answered by Mel 4 · 0⤊ 0⤋
real state is the best investment ever, at any time,the sunner the better,becouse becouse nobody is making any more land??
2007-02-24 18:11:42 · answer #6 · answered by kaybil 2 · 0⤊ 0⤋
No, but with that body,. its time to invest in some palyboy photo shoots.... I think that will be far more lucrative...
2007-02-24 18:24:19 · answer #7 · answered by Z 5 · 0⤊ 0⤋
Depends on where you live..
Some places are highly over-priced...
2007-02-24 18:07:49 · answer #8 · answered by Anonymous · 0⤊ 0⤋
i dont know
2007-02-24 18:11:39 · answer #9 · answered by Anonymous · 0⤊ 0⤋