This summer, the main-stream media was giving a loud and clear message that this is a great time to buy.
Steve Harney listed the many sources that make arguments for why it is a great time to buy. Readers who want to know these reasons should follow these links:
Price are down, some. Interest rates are great for those qualified to borrow. But don’t expect to see me in a short skirt with pompoms anytime soon. This is a better time than the mid-zeros. But it hasn’t turned me into a cheerleader. Since the July cheerleading, the National economic picture has gotten more confusing. Until we see the fallout from the focus on deficit instead of the focus on jobs creation, it will not be clear whether we will see growth ahead or another recession.
From where I sit, CBS Moneywatch is wrong that “this this may be a once in a generation buyer’s market.” Around here, I am not even seeing a buyer’s market. National trends do not translate to the area right around Boston. I am not seeing a buyer’s market at all. CNN Money describes a picture of the Boston area market that more describes what I have been seeing.
The Boston metro area was one of the first to be caught up in the housing boom and prices and sales volume peaked there earlier…with little space to expand, Boston tends to have higher prices than average and they have declined but not collapsed in the bust.
Since the end of the bull housing market, Greater Boston home prices have lost about 17% of their peak, a modest comedown compared with the national median of a 32% drop…
…listings have dropped this spring compared with last March. Demand is also healthy; the median time that a home has been on the market is about 130 days, according to Move.com. Sellers…raising the median asking price for area listings 3% in March, month-over-month.
The Boston area market is better than some: it has resiliency, it has a high-paying job base, many people come here for college and think well of the area — that keeps demand high. But there is not one perfect time to buy.
If the articles at the top convince you to consider buying now, my bottom line remains the same: there are good choices for qualified buyers in most markets, the so-called “good” and the so-called “bad.” The best moment to buy is when buying creates an asset that is has utility for your family for the long term. Your stock and bond investments go up and down, too, but you don’t live in them.