The news says to wait to buy real estate so what should I do?
I have been listening to the media regarding real estate since my career started in 1980 and what I have observed is very interesting. Some of the most successful real estate investors purchased properties in every cycle of the real estate market and were never concerned about what the media said to do or not do. This is why they are so successful.
I know you may not be a real estate investor and all you want is a home for you and your family. What I can tell you is that the real estate market in the Boise Valley changed overnight in early 2005. When I say overnight, I mean overnight. I woke up one morning and we Realtors were receiving multiple offers on all our listings by noon after just putting up real estate signs that same morning.
Just as quickly as the market changed in early 2005 the same thing happened in late 2006. All of a sudden homes were taking longer to sell and many were wondering what happened. Fast forward to the summer of 2007 and there was a serious slow down in the real estate market. Now in 2008 we have seen a record number of foreclosures across the country with tens of thousands of homeowners loosing their homes to the bank.
We are now well into the 2nd year of foreclosures and many sellers that are competing against these foreclosures have been offering not only reduced prices but incentives such as paying for closing costs, paid trips, etc. to get you interested in their homes. The selection of homes is amazing and the amount of great buys in homes is unprecedented in my lifetime.
Know anyone in your lifetime that kept waiting for a great deal on a car, clothes, or some other item and their procrastination caused them to loose the opportunity to buy what they wanted? I see the same thing happening in this real estate market in Southwest Idaho. There are many buyers that are telling us Realtors that news reports and so called "experts" are telling them to wait and buy a home because values could drop further.
Just as the market changed rapidly in early 2005 and changed again in late 2006, it could easily change again and if certain factors are in place those that choose to listen to the media could loose the opportunity to buy the home they want for their family. There has always been cycles in real estate and there always will be. Home values will rise and home values will go down. One thing for sure is that the value of homes has always gone up over the long haul. Look at a chart of home values over the past 30, 40 or 50 years and you will see some corrections in real estate values but the trend is always on an upward trend.
I guarantee you that if you go looking for a great deal in real estate in the Treasure Valley you will find one. I also guarantee you that if you make a smart real estate purchase today it is very unlikely you will be disappointed 5,10 or 15 years from now and you will have seen a handsome appreciation. Even if your home appreciates very little over the next 15 years, was seeing a strong appreciation in your home the most important thing in your life or was the most important thing in your life having a house you and your family can call "Home"?
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