Is now a good time to buy a home?

Question

I am looking to buy a home in michigan and i am wondering if you think prices will continue to drop? Do you think in about 5 months houses will still be the same price? or get higher or lower?

Answer 1

Only a Realtor can tell you what the market is doing now.  There hasn't been a better time to buy. Prices are at prices of nearly 10 years ago.  

Answer 2

They have not bottomed out yet. ANd once they bottom out, the price rise afterwards will still be very slow. So it is best to wait and see right now.  

Answer 3

I think a better question is "Is now a good time to "control" a home? And that answer is YES. There are more people than ever in trouble with their home. If you can control the property without risk on your part, you can use it in the current market, then if it goes down and you don't want  it anymore, you get out. If the market comes back and increases, guess who gets the benefits, YOU. there are plenty of people willing to agree to those terms in all markets and especially this one.

If you want to go a more conventional route with the financing and minimize your risk in this market, Get in touch with someone who specializes in short sales, tell them what you are looking for, then let them know you are only willing to pay 85 to 90% of true market value. If you find an honest short sale investor you may well get a house for 15% under market. That will give you a hedge against the market conditions.

My advice is definitely to use the first method I discussed though.

Email me if you want clarification.

Answer 4

I'm normally an advocate of buying homes at any point that makes sense for the person asking the question.  A home is more than an investment, it's a place where you are paying yourself to live, as opposed to paying a landlord.  

However, if you're in Detroit that's the one exception I'd make.  I'd be very careful in Detroit; the economy there is on such thin ice, you may be better off renting until the city gets back on its feet.  Truly, I've met a few people who got hosed after buying in Detroit.  Be careful.  

If you're not in Detroit and have a healthy local economy, I say go for it.  You'll never time the bottom... never; no one is that good.  By the time you recognize the bottom is in place, you'll have lost all your leverage in negotiating for price and terms.  

Shop now, look for a great deal, and take your time.  It's great to be a buyer in a buyer's market... not so good to be a buyer in a market that every recognizes as being better than before.  

Answer 5

.   Prices will drop and interest rates will rise.  If you can pay cash, wait. If not, buy a house.

Answer 6

If you want to buy a home for a non-investment (aka for you to live there for 3+ years) then now is definitely the time.  Nobody knows if the market has bottomed out, or when it will... if they did, the economy wouldn't be tanking right now.

Michigan still seems to be falling quite rapidly, but if you're looking long term, this is definitely a good time to buy.