Buying a primary home in this crazy market
We have been on the lookout for the past 5-6 months for a primary home. There were very few homes in our market during Jan-March, and April seems to be a bidding war on the few homes(still not that many) that are popping up(between 40-60k on 250-300k homes) from the previous estimates 6 months ago. We are so frustrated that we are ready to cave in and pay whatever to own a house. Just wanted to seek opinions here on whether we should still hold on for a few more months or not. We do not have a real urgency(no school going children etc), but would like to move to a home sometime in the near future.
Any thoughts appreciated!
Most Popular Reply
Properties in Southern California are easily appreciating at 1% per month. Let's say that you did have to bid over the list price to win, within a few months values will catch up to what you paid for the home. At the same time, you're locking in an interest rate that is near 50 year lows ( average interest rates for home loans over the last 50 years is 7.9% ) . Once you factor in the savings of a great rate, pull the trigger and buy your home. Even if values drop a little, time, appreciation and a great interest rate will make your home a Winner.