Is this a good time to purchase a home? If not then when is a good time? Thanks in advance.
It is a sellers market so the market is high for buyers so you just need to look at what is available and see if it meets your needs and price range.
You can't really time the market. Who knows when is the next correction because you can't time the market. Massachusetts is one of the top most expensive states to buy, and majority of the homes are really old.
But most importantly, you should focus on what your goal is. If the numbers work, go for it.
I will say the standard line
“Don’t wait to buy real estate. Buy real estate and wait”
I love that. From an investing perspective, if the deal makes sense, buy it.
There is never a bad time to buy a good property. Just focus on what your goals are and buy accordingly, don't get caught up in the hype either way. We're still buying but our underwriting has gotten more conservative.
I also agree that it is never a bad time to buy real estate. If the deal is there and it will cash flow within your parameters then why not buy it. If you wait till the "crash" then you are losing out on cash flow. For example if I can buy a home that will cash flow $8,000 a year now or wait 2 years to buy, I am missing out on $16,000 on cash flow and two years of appreciation in my mind. There is an argument saying that money will be tied up in this deal you could have used when the market drops sure, but who really knows when the drop will happen. Agents have been predicting a market "crash" for about 2 years now. I have COC return and Cap rate requirements on my buy. If a deal meets these then I am going to move forward.
I agree with @Jason Regan above. I just closed on a property with COC return over 12%. It is not a buyers market but the numbers worked, and although I had a pay a higher price for the property to get, I was still able to capitalize because rent demand and price has gone up along with the price. Bottom line, do your homework and pull the trigger. If you tend to sit for a while to strike a deal, the others will grab it.
@Nik Corbaxhi Nice job on that return! When I listen to the BP podcast they like to say that its never a good time to invest but its always a good time to invest. I look at it this way; In a higher market such as this you will have less casual investors your fighting. As soon as the market falls to a market most consider the best time to invest (buy low) then the compeition will go way up!
@Paulino Miranda Buying a good property is always a great choice. Buy a property that meets your needs whether it is an investment property or for personal use. If it is an investment property make sure it cash flows and does not have any major capital expenditures coming in the near future that will kill your cash flow. If its a personal property do not overleverage yourself, make sure you can pay your mortgage, your other bills and still live the lifestyle you want to live.