Time to buy?
Although there have been continuing bumps in the road to recovery for the housing market, there are solid signs of improvement.
Altos Research recently indicated that median national home prices for the 26 markets that it covers have risen from $444,273 in May to $450,358 in June. Listing prices have also risen over the past three months by more than 2%, and these statistics are coming from a pool of markets not nearly as resilient as ours. San Francisco Assessor-Recorder Phil Ting recently stated that the city “still has the strongest real estate market in the state” after announcing a $2 billion increase in value of property roll.
There has also been an increase in the number of new home development projects set to break ground. A rise in the confidence levels of developers is particularly significant because they are traditionally conservative about coming back into the marketplace.
The truth is, no one can see into the future or time the market. Buyers love to buy when the market is “hot,” but a “hot” market is also a seller’s market. If the priority is to invest in a home for the long term, there’s really no reason to follow the crowd into a market with higher prices and higher interest rates.
The choice appears to be: purchase with the crowd and kick yourself for having waited, or take advantage of the amazing opportunity that is right in front of us.