Like many, you are probably wondering when would be a good time to buy a home in the current market. With prices dropping and rates still low many are concerned. While I would say NOW is a good time to buy, let me clarify that statement and give you some data that might help explain my recommendation.
I would add the qualifier it is a good time to buy a home if you plan to stay in the home for more than 5 years.
The U.S. median home price for an existing home in December 2008 was $175,400, down 15.3% from $207,000 in December 2007, according to the . Median home prices, by region: Northeast $235,000, down 7.8%; Midwest $140,800, down 11.4%; South $158,600, down 8%; and the West $213,100, down 31.5%.
With inventories way up above normal levels, there is still some price settling to go on during 2009, perhaps as much as an additional 10-15% in drop.
Not unlike the stock market, home purchasing in this market is best if seen from the point of view of a longer term commitment. Riding out the waves of the current economic and real estate market can reap great rewards in the long term!