Real Estate Market — time to buy?
Hi Terry,
Do you think housing prices are bound to fall?
I live near Silicon Valley and was thinking of taking advantage of low interest rates and buying a home. I bought a house in 2007 and you know what happened after that.
Many thanks for your insightful newsletters!
Terry Says
Here’s the thing. Many people are going to lose their jobs in this crisis — at least temporarily. But I think this time around, the Fed and banking system will do everything possible to avoid a round of foreclosures, offering extensions and moratoriums on mortgage payment for those impacted by the crisis. So I don’t think we will have a complete collapse in home prices.
With that as a starting point, this could be a good time to shop for a home. Not only are mortgage rates lower — and possibly headed even lower (read my most recent column), but many sellers are worried about the economy and might be more tempted to make a deal. So if you think your income is secure, and you can qualify for a mortgage, this could be a great time to go house shopping!
