Buyers: Timing the Real Estate Market

Is There a Perfect Time to Buy Real Estate in Truckee?

In a soft housing market, like we are experiencing now in our Truckee real estate market, buyers often wait on the sidelines for a clear sign that the market has reached rock bottom before they make an offer on the property they’ve been eyeing. There are two problems with this strategy. Too many times, the “other guy” that was eyeing the same property makes his move and purchases the property before you. The other problem is that too often we don’t know that the market has hit the bottom until it has turned the corner and starts going back up. You can only know for sure that a market has turned through hindsight. In other words, you can’t time the market

A risk of buying in a slow market is that the value of what you buy might drop before it rises. Or, prices could stay flat for some time, which means that you won’t build equity unless you pay down principal on your mortgage. If you should have to move during a time when prices are soft, you might not be able to sell for the amount you paid. To decrease this risk factor, don’t buy for the short term.

Give careful consideration to how you finance your purchase. Stay away from mortgages that have short due dates and balloon payments. If the market in your area stays soft for longer than anticipated, you don’t want to be caught having to refinance at a time when your home might not appraise for the price you need to complete the transaction.

A benefit of buying in a soft market is that you have the opportunity to buy at a reasonable price. But the key is to buy the “right property” at the “right price”. As professional Realtors, we can help you determine if a property is a “good buy”. We will give you solid advice about the home you may want to purchase and we will help you throughout the entire process.