One of the criticisms of Realtors® that I really don’t like is when people say, “Of course, if you’re a Realtor®, any time is a good time to buy or sell a home”.

At the heart of the matter is a confusion over what we do for a living and what we endorse.  No one says about doctors, “Of course, if you’re a doctor, any time is a good time to get sick.”

Should you buy a home in 2008? 

Well, that depends on a lot of things.

Let’s Start by Testing Your DNA.

Let’s start with something obvious, your “D”.  Do you want to buy a home in 2008?  If you’re paying rent and you’re happy about it, and you like where you live, and you like your landlord, and you think building equity in someone else’s property is a fair trade for having a low monthly payment, then there’s a good case that you should rent.

Now let’s talk about your “N”.  How about your situation?  Are you (and your spouse / significant other, if that applies) in a fairly stable job situation, or do you think you’ll be moving in the next one to three years?  In the short term, prices of real estate can fluctuate, and (as importantly) there are closing costs involved when you buy or sell a home.  If you’re thinking you need to move in a short time, you might be better off renting for now, and saving for a home at your destination.  Do you have sufficient space where you are now, or do you have to make a move for some reason — starting or growing a family or the like?

And let’s not forget to cover your “A”:  Do you know what your housing payment will be for the types of home you might be interested in?  Have you looked at good, conservative loan programs like fixed rate mortgages and decided that you can afford the payment?  Do you have money saved for a down payment, or, if not, have you found out if you might qualify for 100% financing?  Have you factored in tax and insurance, and are you still comfortable with the payment?

DNA — Desire, Need, Ability.  If you want a home, if it meets your needs, and if you have the ability to get into a home without overextending yourself, then, yes, now is a great time to buy a home.  Interest is still low, and prices have fallen throughout 2007, so homes in the area are more affordable than they have been in the last few years.  Many bank owned foreclosures are priced well below market, and not all of these are run down or in bad shape.

To find out more about if home ownership is right for you, we’re always happy to help first time buyers find out more about the process, discuss loan programs and properties / prices that are available in different areas.

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