Is it time to buy? This is a question that I have been asked by multiple people over the past couple weeks. All kinds of talk in the media about the economy getting stronger and home prices rising. The answer to this question is never a simple one. If you have been waiting on the sidelines for prices to hit bottom and then jump in to buy then maybe it is but we don't know for certain. We won't know until prices actually start going up that the bottom has hit. While prices have remained nearly stagnant over the past couple months, there are signs that prices may actually rise soon. A couple zip codes in the Las Vegas area have seen small increases over the last couple months is certainly one indicator. Another great indicator is watch the new home builders and while they are not raising prices, look at their incentives. As incentives such as free appliances or upgrades at a discount go away this actually is increasing the price of the home.
If you have been thinking of purchasing a property but waiting for your credit score to jump up or continuing to save for down payment and closing costs, then waiting til you are ready will not hurt. Even if prices do start to jump they are not expected to be huge by any means.
Also you need to consider mortgage interest rates, unless you are paying cash, not just the price of the home. Mortgage rates are near historic lows and may go up a bit but nothing that will knock anyone out of the market as long as you can genuinely afford the home in the first place.
As always, take your personal situation into consideration and don't just go out and buy because someone told you to.
