Is Now a Good Time to Buy Real Estate--Revisited

Some time ago I wrote a post asking this very question. At the time my general concensus was yes this is a good time. Has my stance changed since then? Absolutely not.

In fact I feel even stronger than before that now is not only a good time to buy property, it may very well be The Best time in history to buy property. Why do I think this way? Well there are many contributing factors but the bottom line is this.

We still have a ton of inventory keeping prices low. Even lower than a year ago. This inventory, although some may say is shrinking--this however is unique to your market and something you should follow closely--not only is still there but I don't see it going away anytime soon. We still have millions in or facing foreclosure, millions upside down, and a shadow inventory--bank owned properties not for sale--that will years to eliminate. All these factors will help keep the absorbtion rate--time it would take to sell everything currently listed--higher than what a healthy level should be, which will in turn keep inventory high and prices low for some time to come.

But low prices are not enough. A low interest rate plays a key role in my belief why now is The
Greatest time to be buying. "Get 'Em While They're Low People." We have no idea how long this will last. The government simply cannot sit still and keep their sticky fingers out the interest rate. They feel it is their obligation to manipulate this one way or another, and with president Obama's term coming to an end there will be more and more uncertainty as to where they will be anytime soon. Especially if he is not re-elected. The next person in there will absolutely have to do something--If for no other reason than he/she just, he has to do something. If they stay low obviously this window will stay open, but if they start to climb every one of you will be saying, "Why didn't I buy when the interest rates were low?"

There's a few other related items I could toss in, but if just those two aren't enough, to get you off your duff, then nothing else I can say will get you motivated to get buying now. I'll tell you what, I really don't care what you think about all this. You can disagree 100%, it's your god given right. But I am buying EVERYTHING I can get my hands on, Right Now.