This may be the best time in a long time to buy real estate. In fact I'm sure it is.
And the worse it is to sell in your particular location (California, Florida, Nevada come to mind) the better the deal you'll be able to find.
In my neck of the woods--Wauwatosa, Wisconsin-- the absorption rate of the market is close to a year. Meaning at the current rate of sales and active listings, it will take almost a year to sell them all.
However, properties are coming on the market at a slower rate and, at least anecdotally, sales are starting to pick up so the absorption rate should start to slowly diminish.
A six month absorption rate is considered to be a neutral market, so we are in a fairly strong buyers market. (Some of the areas mentioned above are in the 30-40 month absorption range!)
Despite all of the bad press about real estate, actually because of it, this is a great time to buy. TIME Magazine ran a piece in this week's issue that says as much. (Click HERE for the full story.)
In the article, the famous investment advisor Peter Lynch talks about owner occupied real estate being among the best investments one can make. It's so good he advises that you invest in a home before you invest in the stock market.
Is renting sometimes cheaper than buying? In the short run it sometimes is. But people who own build up a huge chunk of equity over their lives whereas renters build nothing. If nothing else, owning equals a built-in, forced savings plan.
This is not to say every house on the market is a great deal or that every person who doesn't own right now should run out and buy. But, if you have decent employment and credit and you'll be in a house for 5 years then this might be your time of all times.
Take care,
Chuck
Chuck Karpfinger
RE/MAX Realty 100
414-453-8223
mail to: CharlesK@execpc.com
http://www.chuckkarpfinger.com/
Twenty-five years of taking great care of hundreds of clients.
Wisconsin Licensed Real Estate Broker
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