Is it a Good Time to Buy Real Estate??

Posted on March 5, 2009 | by Denny Oh

Deal_or_no_dealAccording to a recent article in Yahoo! Finance, yes, it is a good time to buy real estate.  The article, written by Jay MacDonald, looked at five different goods and posed the question, should you buy today or wait for greater savings?

MacDonald reminds us of Economics 101 “ supply versus demand.  Everyone knows that the economy is down and people are holding onto their moneyhence, theres a surplus of homes on the market.

This buyers market however, can quickly change, once your neighbors decide to spend instead of save.  I dont believe well hit the bottom and suddenly see a huge rise in home values, but I do believe that todays buyers are going to do better than those who wait(generally speaking).

The article basically states that now is the time to buy. Since everyones on the fence about buying, sellers have very little leverage.  And once people hear that things are better, its going to be too late.  Ive said this over and over, but I thought you might like to hear it from someone else.

But as I tell all my clients, if youre thinking you may have to sell in the next five years, dont buy.  Also, you want to make sure you have a steady job and have plenty of cash saved up.  You want to push your limits, but not over extend yourself.

If you have any questions, please feel free to contact me anytime.  Denny Oh 858“243“2092 [email protected]

Click here to read about great real estate deals in San Diego.

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2 Comments

  1. Scott Evans says:

    For those who people have saved up, this is definately the time to strike and purchase the surplus of foreclosures on the market. With conventional financing, an investor normally would have to put 25% down.

    However with Homepath, this program allows an investor to only put 10% down toward the purchase of a fannie mae forclosed home. Here is the website and a few more details regarding the program.

    http://www.homepath.com

    1) No MI
    2) 90% non owners <417 K
    3) Embraces High balance conforming limits
    4) No appraisal.
    5) Allows borrower to have up to 10 properties.
    6) 6% seller concessions to 97%
    7) No owner occ percentages on condo?s

    If you are in the market for a some great fannie mae forclosed homes, I would love to work with you.

    Scott Evans
    619-723-7289

  2. Denny Oh says:

    Hey Scott,

    Thanks for the info. It sounds like a great way for people to buy with little money down. Investors just need to realize that they’ll typically need 25-50% down to make a property cash flow. But…this might be perfect for someone who wants a second home.