As we all know, the early part of the decade was the golden age of real estate. Money was cheap to borrow thinks to historic low interest rates. Home inventory was through the roof as developers built homes for buyers to, well, buy. Prices skyrocketed and so did values!
As we sit here in 2007, things have changed just slightly. The real estate bubble has not burst. It has exploded. With a very loud bang! Such is the cycle of life in the world of real estate. We go through hot and cold spells, and now is definitely a bit chilly.
So, is there any hope amidst the doom and gloom? If you are in a position to buy, should you be looking to get back into the market. Making the determination requires a consideration of a number of factors.
The bottom of the real estate market. For a buyer, it is the golden target. The goal is to buy at the very bottom of the market so you can reap the rewards as it rises. The problem is nobody can identify it, so don't think you can.
Don't follow the herd. Nobody made money investing in what the majority is doing. To make the big money, you need to be ahead of the curve. That means buying when everyone else is not such as in this real estate market.
It can be difficult to see the forest for the trees, but you need to. As bad as real estate looks now, it will bounce back. If you can afford to buy and sit on a property for the next three to five years, you will do very well.
To buy a home, you are going to need a loan. Given the disaster in the mortgage industry, is anyone lending money anymore? Of course. Most of the mortgage problems are occuring with bad credit lenders only.
Many people associate buying a home with the end of having fun. It is not. You are simply being smart. You will make more money living in your own home instead of renting. You are ready to buy, so do it.
At the end of the day, you have to take the real estate leap of faith on your own. Millions have done it. Don't be afraid of the bad news you are hearing. If you buy within your financial comfort level, you will be happy you took the step.
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