Welcome to Your Roadmap to First Time Home Buyer Success!

Buy Now or Wait?
By: Bernice Ross

Has the real estate market in your area bottomed, or are there more price declines to come?

Every person buying real estate would like to catch the market at the bottom. The two burning questions on almost every buyer’s mind are: “Has the market hit bottom yet?” and “Is this the best time for me to buy?”

Most every senior bank executive is extremely interested in what the market is doing. The numbers the bankers are most interested in seeing are the absorption rates, how much the market is increasing or decreasing on a monthly basis, and what their holding costs will be. These three numbers together help the bank determine where it has to list the property to obtain a quick sale and minimize their losses. Buyers and sellers are interested in these statistics, so listing agents should have this information available.

If you track absorption rates and increases/decreases in the average price per square foot, you will have a fairly accurate gauge on what a local market will do in a given price range for the next 60 to 120 days. It’s not perfect by any means, but it has been a consistently accurate predictor of whether prices will be trending up or down six to twelve months from now.

As a buyer, you may not be familiar with these terms, but they are very important numbers in terms of your decision to buy or wait in any given market.

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