As prices drop, foreclosures go up and interest rates fall, there has never been a better time to buy. Whether you are an investor or a first time home buyer, now is the time to buy. So why are most people just sitting on the fence? According to the Minneapolis Association of Realtors the median sales price fell to $175,000, that’s down 19.2 percent from the same time last year and the lowest November showing since 2001.
With all the bail outs and market uncertainty, buyers are waiting to see how low prices will drop. Meanwhile those buyers still need housing which is making for a strong rental market.
Buyers are willing to Lease with the Option to Buy, but they are not willing to put down a lot of money for fear of property values dropping even further and losing their non refundable option consideration because they have opted to not exercise their option to buy.
These market conditions are creating an artificially low price. I believe that once the credit market settles down, real estate values will stabilize and maybe even increase slightly right away. The only question is, when will this happen? I can't answer that, but I do know that now is a great time to buy and hold. Properties at these prices are cash flowing very well today, so why wait to see where prices will stop falling and pass up one all that cash flow and depreciation to someone is going to get, so it might as well be you.