Princeton Town Topics – Let’s Talk Real Estate – June 8, 2011
TIMING THE MARKET
If you are waiting until the real estate market has finally touched bottom before you buy a home, just know that even the most successful real estate investors say that it’s really impossible to accurately time the market.
However, there are a few indicators that seasoned investors use to decide whether a property is a good investment. First, they look at local market conditions. If there are a lot of properties for sale that eventually sell below asking price, then you have a “buyer’s market”; which means you can negotiate a better deal at the bargaining table.
Interest rates are also important. Most buyers think that the asking price of a home is the key financial issue to consider, but the interest rate is actually more significant. The difference of 1 percent doesn’t sound like much, but it could mean many thousands in savings over the lifetime of the loan.
Today, with home prices and interest rates at historic lows, experts say this is a perfect climate to buy.
