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Is this right time to buy house? The real estate market started prospering in the late 1990’s and peaked during the years of 2004-2005. This escalation was fueled by easy mortgages by banks, financial institutes and mortgage insurers, higher earnings of individuals, change in lifestyles and so on an forth. The housing market grew at a rapid tempo and home prices skyrocketed in no time. This led to superficial pricing of houses in several areas in America. However, with the economic crisis and recession in United States, a drought has set in the housing market .Steep corrections have caused home prices to slump below their buying price. In some places prices have descended by more than half the value they were bought at. To add to it, the loss of jobs has resulted in untimely payments of loans taken, owing to which the banks have to confiscate and sell off the properties at even lower rates than at what they were loaned for. Sometime back New York Times reported that “The slump in home prices from the end of 2005 to the end of 2006 was the biggest year over year drop since the National Association of Realtors started keeping track in 1982.” This housing crash has led to many individuals, who have saved money, pondering over the question whether this is the right time to buy a house or not. It is comprehensible if the buyers are racked with indecision. Buyers are hovering over the question that if the prices have not bottomed, then after he or she buys the house, the possibility that the rates will fall cannot be ignored. This will lead to significant loss to the buyer as he or she could have had the same house at a lower rate if he or she would have kept their calm and waited a little longer. On the other hand they also face challenge that if you wait is too long, the perfect house which is available for sale, may be sold and their aspiration for that dream house would become very difficult to materialize. However, the buyers should not hover over such decisions since similar dream houses will keep coming on the market. Experienced Real estate experts with their in-depth analysis and intuitive insights are able to anticipate that home prices would fall even further and this is not the right time to buy a house. Buyers should wait for the opportune moment when the prices reach their bottom. This will confer them with ample time to buy their dream home at the best rates possible. |
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