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May 18

Is Now the Time to Buy Your First House?

It’s been a scary few years for the housing market. But at some point, the nightmare has to end (please?). Is now the time? Should first-time home buyers consider jumping into the market?

After all, home prices have fallen 34% from their 2006 peak and mortgage rates are hovering at or near record lows.

On one side are those who argue that homes are more affordable than they have been in decades, based on how much monthly income a mortgage consumes and whether owning is less costly than renting.

On the other side, pessimists insist that the housing slump is far from over, and that prices will continue falling—perhaps as much as 20% or more. Click the link to read the Wall Street Journal debating both sides, and make up your own mind… is now a good time to buy or not?

Eric Lascelles, the chief economist at money-management firm RBC Global Asset Management Inc., says this is a remarkable time to be a first-time home buyer.

 A. Gary Shilling, president of A. Gary Shilling & Co., an economic consulting firm in Springfield, N.J., says buying now is a terrible idea.

So what do you think?! I’d love to hear from you.

2 comments

  1. Kathy

    It’s my opinion that if you can afford the monthly payments now is a great time to buy. Sure prices could fall a bit more but if your not going to sell it does not matter. In 10 years prices will have recovered and buyers will look back at today as “the good old days when you could buy a home for cheap”.

    As they say in the stock market, don’t try to time it, cause you will very rarely but at the absolute bottom. Buy today because you will be getting a great value in the long run.

    1. Sarah Jullion

      Wow Kathy! You said it! The Chase-Shiller March results came out today… home rices are at 1998-99 levels. That’s good news for Buyers, but difficult for Sellers… essentially all appreciation for the 2000s has been wiped out. But again, that is good news for Buyers!

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