| As has been reported in the media lately, the real | | | | While formerly hot markets like San Diego are |
| estate market has cooled off dramatically. This raises | | | | definitely beginning to stagnate, other local markets like |
| the question of whether you should buy now or wait | | | | Jacksonville are actually picking up. In practical terms, |
| for a bit for prices to fall further.Should You Buy Real | | | | the first thing you need to do is evaluate what is |
| Estate Now?First off, timing anything in the financial | | | | happening in your local market.If your local market is |
| arena can be a bit of a misnomer. History has shown | | | | cooling down like much of the nation, you are definitely |
| that real estate is a good investment over time | | | | coming into a better position as a buyer. The reason |
| regardless of when you buy. Real estate also has the | | | | primarily has to do with the timing of previous buyers |
| secondary benefit of being something you can actually | | | | during the hot phase of the real estate market. Those |
| live in even if the value drops, a dramatic difference | | | | that got in during the beginning of run up, say five |
| from stocks which make very leaky homes. While | | | | years ago, are sitting pretty on big appreciation gains |
| stocks can be traded on a daily or hourly basis, the | | | | and will be able to handle any temporary dip in prices. |
| nature of homes is such that you pretty much have to | | | | These people are not going to be interested in |
| sit on your investment for some time regardless of | | | | dumping their properties, but another group certainly is |
| how the market is going. That being said, the market | | | | going to.Imagine purchasing a property in March of |
| always heats up again. The time it takes for it to do so | | | | 2006. You would have picked up the property at |
| is time you can build equity in your property by paying | | | | literally the highest point in the market. As real estate |
| down the mortgage.If the market is cooling down now, | | | | cools down, so does the value of your property. |
| does this present you with the golden opportunity to | | | | Demand for homes is dropping, which pushes prices |
| purchase properties at a discount now? Maybe or | | | | down. |
| maybe not. Every location in the country is different. | | | | |