Time to Buy?

I have noticed some discussions lately about market timing and our housing market. Some have said that it would be smart to wait for the "bottom" before committing to a purchase. Even if you could predict when the bottom will occur (you can't) there is more to that equation.

For anyone contemplating a home purchase, it is also important for them to factor in the cost of financing in that decision and their ability to pay at that rate.

If I can afford the home I want and have a time horizon longer than a year or two, what difference does it make if I buy at the bottom or a year (or two) early?

Just as home prices can go down, mortgage rates can go up. Today's rates are at historic lows. Buying a home now at a fixed rate that is affordable sounds smart to me.

I bought my first home in 1974, in the midst of a recession during the oil embargo. I was too dumb to know that it was a bad time to buy a house (I was only 21) I was not a speculator, just a kid who wanted a place of his own to live. My time horizon was very long. Never heard of the concept of "flipping". I just liked the idea of no landlord. Although sometimes it was a struggle, I was able to make the payments. Needless to say, I did OK with that house.

I am glad that there was no 24/7 media to talk me out of that purchase in 1974. Although the bottom may not be here yet. there are some good deals out there right now. If you are planning on hanging around the Old Pueblo for a while, buying that home you want and can afford might be a smart thing to do.