Why buy a home in this housing market? It’s not an easy decision to make when the prices keep going down and you don’t know when they will stop. You want to be able to jump in at the right time to ensure that you are getting the best deal possible. Many analysts say we have not seen the bottom yet. Home prices in the housing market are expected to continue to drop, sales are expected to be slow, and construction will decline through at least next year.
So why buy in the current housing market? Home prices won’t be declining forever, and they will begin to appreciate again in the next 5 to 10 years. If you are buying retirement property, a vacation home, or a primary residence you plan to live in for the next 5 to 10 years, now is a good time. Your advantages are the mortgage rates are still low, competing price bids are very rare, sellers are willing to negotiate, you have bargaining power, and time to research your purchase before buying. This housing market is a buyers market.
Another option for buying your 2nd home with plans of retiring there, is the possibility of renting out the home to help defray purchasing costs. If you can get a rental income to cover your monthly mortgage expenses, it's a win-win situation. If you choose to wait until you retire in 10 to 20 years, you may be priced right out of the market. The soft housing market is a buyers market, but it won't last forever. Remember the seller's market we were just in awhile back?