When is it The Right Time to Purchase a Home?

Home prices have fallen at least 34% in most cases since their peak in 2006. However good that sounds for a potential buyer there are still many more factors that go into whether or not you should purchase a home.

 

Review Your Finances:

Sit down and make a list of all current monthly bills. Consider what you have in savings and determine what portions should be used to pay down current debts, or to be used for down payment.

 

Spring Inventory:

Every spring the housing market explodes with new homes for sale. This is not when you should be purchasing. In fact, most experts say around Easter Sunday is the best time to find a deal. Houses have been sitting on the market for a few weeks or even months and prices begin to drop. Being patient and shopping around is the best idea when it comes to purchasing a home. The second best time of the year to buy a home is around Christmas. The end of the year is tight for most and home prices drop, especially since homeowners are looking at starting another year still owning the home and paying all of the insurance and taxes that go along with it.

 

A New Generation of Homebuyers:

Yes, it’s true this is the best prices for homes we’ve seen in years, and the lowest average 4% mortgage rate in history, and could perhaps be the best time to buy for this generation of first time homebuyers, but some experts insist the housing market may continue to slump with the current recession and this could benefit potential buyers willing to wait for the best prices. However, like any other financial investment, a purchase like this is always a risk and it’s ultimately up to you to decide when to purchase a home.

Yes, it’s true this is the best prices for homes we’ve seen in years, and the lowest average 4% mortgage rate in history, and could perhaps be the best time to buy for this generation of first-time homebuyers, but some experts insist the housing market may continue to slump with the current recession and this could benefit potential buyers willing to wait for the best prices. However, like any other financial investment, a purchase like this is always a risk and it’s ultimately up to you to decide when to purchase a home.

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