Is Now The RIght Time To BUy A Home? | Bishop, CA Real Estate ...

Is now the right time to buy a home?
While the value of a home and memories created in a home are ?priceless?, it is a big decision considering the wild ride the housing market has taken.

Locally we have seen the median home price climb as high as $406,500 in October 2006 and fall to a low of $215,000 in March of this year; a difference of 47% in just under 6 years. Currently we are seeing much more stable prices and interest rates are at or near all-time lows. Some experts say that home prices will never be lower, combining decreased prices and low interest rates. Others say that low rates will not last and inventories could rise creating an additional fall in housing values. I personally believe here in the Eastern Sierra due to limited housing supply and lower than average number of distressed sales; prices will remain flat with some slow increasing of prices. It is highly unlikely we will see high single and double digit rates of appreciation any time soon.

If you are thinking of purchasing your first home or perhaps moving up to a larger residence consideration of your future plans is of the utmost importance. Do you anticipate staying in the area for at least the next 5 to 10 years? Will you be happy in a specific neighborhood? Is your job secure? Does your family size plan to increase or decrease in the future? These are all questions to consider prior to purchasing a home. Housing is not an extremely liquid asset and both acquisition and selling costs can be sizable.

What about the down payment. Will making a down payment completely deplete all of your savings? Loan requirements stipulate that a buyer put as little as 3.5% of the purchase price down for FHA loans and as much as 20% down to avoid paying private mortgage insurance. A buyer will want to insure that they still have money in savings for any emergency situation.

How much house can you afford? A home purchase is one of the largest financial decisions one can make in their life. It is important to do your homework and make sure you are not getting in over your head. I would advise anyone who is considering purchasing a home to speak to a lender first so they know exactly what price range they are comfortable in and approved for. Generally a good rule of thumb is your max home purchase price is 3 times your annual income. For example if you and your spouse make a gross annual income of $100,000 you should be looking to purchase under $300,000.

These are just a few items to consider when thinking of buying a home. If you feel now is the right time for you, I would advise you speak with your local Realtor as well as a lender to begin the process of buying a home. And while the economics of home buying are critical, we must remember there is much more to it: lifestyle, memories, family, and pride of ownership. People?s homes are so important because they are the setting for life?s most meaningful moments.

About Jake Rasmuson

Contact Information: Office Phone: (760) 873-4264 ext. 33 Cell Phone: (619) 971-0544 Direct Email: jakerasmuson@hotmail.com Website: Bishoprealestate.com This entry was posted in Uncategorized. Bookmark the permalink.

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