I thought it would be appropriate to discuss the question- Is really a good time to purchase a new home or for that matter any home at all?   Many things factor into whether this is a good time.  Of most importance would be the stability of your employment.  If you have good job stability this may be an excellent time.  If you do not know if you’ll be employed next week or month surely it is not a good time.  Now the question comes in about credit and down payment.  These things seem to be of great importance in the news but in the industry we do not see this as much of a problem in the marketplace.  If a person has moderately good credit and a few thousand dollars with stable employment the person will get a loan.  I am not talking about an internet high risk type loan but a regular interest fixed rate loan for 30 years. 

Now the question assuming you can get a loan and have an OK credit score is now a good time to buy?  To give you a personal application I recently purchased a not so fuel efficient vehicle.  It was not a hybrid, not a 40 mpg vehicle but one that will get less than 18 mpg on a good day.  Why did I buy that vehicle - because no one else wanted it and I could save enough money on the purchase that I could more than pay for the extra gas I will spend while I own the vehicle.  So my answer as to whether now is a good time to buy is can you get a good deal and be able to make the payments?  If you answer is yes then now is a great time to buy. 

A real estate investor told me he started investing in the 1960’s and was told it was not a good time to invest - he did anyway.  Each time he was told it was not a good time to invest but he did anyway.  He now has over 100 properties and is quite well off.  If you can get a good deal and afford it now’s a great time.  Happy buying.

As I mentioned in my last entry I thought it would be good to discuss the advantages and disadvantages of buying a new home versus buying an existing home.  An obvious advantage in the new home market is the ability to pick the colors, particular features and include only what you want in the new home.  A new home community may also allow you to meet neighbors more quickly as most of the other residents are new also.  Some new home communities have amenities such as community swimming pools and community centers that the existing market frequently does not provide. In looking at the new homes this may sound like an insult to your intelligence but it is new and all the items in it are new.  Keep this thought in mind as we discuss existing homes.

            In purchasing an existing home you pick the style of the home by say only looking at two story homes, you pick the colors by what is available in the market during the time you are looking and what is on the market at that time.  You can still make those decisions but are limited by what is available as a completed home.  Frequently in the existing market you have more established neighborhoods, with more mature landscaping, and areas that have a bit of a history.  In buying an existing home you do not need to wait for the home to be built- you merely work out the details as to when you can settle on the property.  As I mentioned above if you do buy a 10 or 15 year old home everything in it is about that old unless it’s already been replaced.  How much will you have to repair or replace is a question you need to answer as you look at the existing home market.

            There are advantages and disadvantages of both.  It’s a decision that you to analyze as to what’s best for you and your family.  Happy house hunting.