Move Up or Save Up

In 2009 my fiance and I thought the housing prices were the lowest they were going to get, the first-time home buyers credit was about to run up and interest rates were crazy low. It was the perfect time for us to buy.... or was it? It is always difficult to tell exactly what the market is going to do and how it will change, but there are thousands of couples and families out there right now debating on what to do. Do they purchase their first home? Do they purchase a bigger, newer home? Do they continue to save and see what comes their way in the next year or so? It is still a buyers market with home prices continuing to fall, but it is unnerving to think that they are still falling and you wonder when they are going to stop. If you plan to purchase your home and live in it inevitably, than maybe it is the right time to buy a home. If you are looking to flip your house, now is probably not the time as we have no idea when house prices will begin to rise.

There are several cities across the country where home prices are at an extreme low, and some cities where home prices have begun to creep up. Before you think about purchasing a house, look into the rental market. If purchasing a home is going to be less than renting, purchasing is a great idea if you have the 20% to put down. If you don't have the full 20% down payment, you will be hit with a monthly private mortgage insurance fee that may increase your monthly payment. There are several factors that you should consider before purchasing a home in this market. Although it sounds appealing because the prices of homes are low, you need to think about your future. If you find your dream home, the price is right and you don't think you can beat it, take the chance, especially if you plan to be in that home for a long time. If your dream home has not crossed your path, hold out and see what comes up. It it probably out there and you just have to wait for the price to be right.