Is it time to buy?

To buy or not to buy? That is the question or should I dare say opportunity. I have been asked by many clients whether they should buy now or wait on the sidelines until things hit the bottom. Each client has a different situation but the Collierville market offers a tremendous buying opportunity that won't last forever. Here are the reasons I think it is the time to buy:

1) "Buy low sell high". If we aren't at the bottom of the cycle now we will be soon. Buying now will mean you are on the bottom of the curve over the next cycle. Some people will try to wait until they think we get to the absolute bottom but why wait? You have a better selection of homes now and over several years it will not make that big a difference whether you bought at the very bottom of the cycle or right before the bottom.

2) New home inventory is being reduced with minimal inventory being built behind these sales. this will help stabilize the market and will help the recovery. It also means that very soon there will be a shortage of new homes. You now have the opportunity to make a great buy and have a pretty good selection of new homes, but that will not last long. With the weakaning dollar you will continue to see the rise in construction prices. This means you will see a dramatic rise in new home prices once the inventory thins out and things pick up a little. I anticipate the new home market inventory in Collierville will gradually be reduced and at an undersupply by the end of the summer. We should see the resale market stabilize and start to heat up again after the presidential election in spring of 2009.

3)Interest rates on a 30 year mortgage are still at historical low rates hovering around 6%. When can you say you have had the opportunity to purchase a home at more perfect time? Low interest rates, a buyer's market and a location like Collierville that will be in demand for the next foreseeable future make this a perfect opportunity to buy.

One of the obvious hurdles to being able to take advantage of this opportunity is selling your present home. The one piece of advice I can give is look at the big picture and price your existing home to sell. It is tempting and just plain human nature to hold out for what you thought your house is worth; but what about what it costs to buy your next home? Look at the big picture and focus in on what you will owe or have invested in your next home. You will see that if you are moving up in price it makes sense to take a discount on your home if you are getting the same or better discount on the larger home.

If you are lucky enough to be in the situation to be buying a home, take advantage of this situation instead of letting the situation take advantage of you.