Housing - Now is a Good Time to Buy

If you are thinking about buying a house in which you will live, now is a good time to start looking.

According to the Wall Street Journal, median housing prices are expected to decline about 10% in 20 metro areas up through 2008 – 2009. The WSJ article, currently free access in its on-line edition, is based on a report by Moody’s Economy.com. Of course, as the article points out, it is difficult to predict when the bottom will occur. And there is risk with trying to time the bottom exactly. However, housing costs are expected to be lower than the peak which occurred in the past year.

Separately, mortgage rates have hit a seven month low according to msnbc.msn.com, with 30-year, fixed rates averaging 6.30% and 15-year, fixed rates averaging 5.98%. One year adjustable rate mortgages (ARMs) are at 5.46%. For reference, I do not like using ARMs to make a home mortgage affordable. As I cautioned in an earlier post, ARMs are a risky approach to make mortgage payments affordable for a long period.

One never knows exactly how long favorable buyer’s conditions will last. And the market may become even more favorable for buyers in the upcoming months. However, if you’re truly in the market to buy, now is a good short term opportunity.

This is not financial or housing advice. Please consult a professional advisor.

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