“I remember back in March 2008 when home prices were headed for, or near the bottom of the market and about to turn upward. Interest rates were around 6% which was still near the lowest rates we had seen in almost 2 years. I was going to buy a home because my family is growing and we wanted a permanent residence we could call our own. We talked about it a lot and could have stretched a little and made it work but we decided to wait just a little longer. When I spoke to our real estate agent, she said she understood though she told me she thought it was a good time to buy “because the market will come back” she said.

The market has changed in the last few months and real estate is starting to recover. Prices have gone up a little and so have interest rates. If we decide to buy now, it’s going to be even more of a stretch than before. Maybe this increase in the market is temporary and prices will drop again along with interest rates. If the market goes up, we’re going to have to move somewhere else if we’re ever going to own a home.”

This story hasn’t happened, yet, but I can tell you there are several times in my life when I have looked back at potential real estate deals I passed on and aid to myself “ I wish I would have done that deal.” Or, said to my wife, “Remember when we could have bought that property for that price?” I’ve also said to myself, “I wish my agent had been a little more pushy. She would have made money and should would I have made money”.

If you’re a buyer, the fundamental questions you need to ask and answer for yourself are 1) Can I afford it, 2) Do I like the home and 3) Do I believe that this real estate market will come back?  If the answers are ”Yes, Yes and Yes” you should seriously consider getting yourself into a home since the market is still very soft.

As an agent, you need to prompt your buyers to consider these questions if they are serious about homeownership and locking down a fixed rate payment for years to come (except for taxes and insurance increases). As a consumer, if you are considering a primary home (one you’ll live in for some time to come), that rates may be better than renting right now, especially when you consider potential tax write-offs. It’s hard to bring yourself to buy in a down market, but it’s harder to buy in an escalating market. Real estate is “on sale” right now but for how long is anyone’s guess.