It IS a good time to buy a home for sale – home prices are down!

Is now the best time for you to buy a home? For many, it is. For some, it is not. But the majority of families do have the confidence in their personal situation to pursue the “American Dream” of home ownership.

Carpenter Realtors® report, The 6 Reasons Today May be the Best Time in 40 years to Buy a Home outlines why today is a great time to buy a home. We have already addressed three of those reasons. Today, I want to focus on the fact that Home Prices are Down.

Many of us are seeing local and national articles and news shows telling us home prices are up. If home prices are down, how can they be up? It is important to understand they are touting that the average prices of homes that have sold are up… not that the individual prices of specific homes are actually up. What I’m trying to say is that it’s likely the value (reflected in the price someone is willing to pay) of a specific home is flat or down a few percentage points from the value of that same home in 2006. Nationally, that could be as much as 30% from the peak.

Generally, the news reports you hear and read are simply saying the average prices of homes that are selling now are higher than the average prices of homes sold last year or in years past. Those numbers are distorted due to the mix of homes being sold.

With the actual values of homes generally being down from 2006 or 2007, it means a homebuyer can acquire more house for the dollar today. As the economy continues to recover over the coming months and years, home values are expected to rise. We believe the values of specific homes are at or near the bottom and will begin to increase as well.

If your personal situation allows you to move forward with confidence and buy a home, you don’t want to be looking back at this moment in time 6, 12 or 18 months from now wishing you had taken advantage of the opportunity. Today is the best time in 40 years to buy a home, if you’re ready.


Posted by: David Caveness

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