"Is it a good time to buy a home? The latest round of reports on the housing industry gives hope that the real estate market is coming out of five-year recession.
The answer, according to more than half of the 1,100 the investors surveyed by Millionaire Corner in September, is "Yes." About 54 percent of participants see opportunities in real estate with the least affluent investors appearing most bullish on investing in property. More than 60 percent of investors with a net worth below $100,000 said it was a good time to buy real estate, while the share falls below 52 percent for investors with $1 million or more.
Business owners, who invest a relatively high percentage of their assets in real estate, were the most keen to invest in property. More than 62 percent agreed that now is a good time to buy real estate.
Prospective buyers asking, “Is it a good time to buy a home?” should consider more than just market timing, said Zillow blogger Leonard Baron. The most important consideration is whether an investor plans to hold the property for the long term – at least five years. Chances are slim that a buyer will recoup all transaction costs on a property held for a shorter period.
The answer to the question, “Is it a good time to buy a home?” also depends on whether buyers have job security job and whether home ownership would be significantly more expensive than renting, Baron said. The property should be fairly priced relative to comparable properties in the area, and the neighborhood should be stable.
Experts expect the real estate market to hit bottom this year, but Rick Sharga, executive vice president with Carrington Mortgage Holders, predicts a “catfish recovery” with prices remaining flat through the next two years. According to the real estate website trulia, Sharga says a “looming shadow inventory” of distressed properties will prevent the market from rebounding. About 800,000 foreclosed properties remain on banks’ books and another 800,000 homes are in foreclosure, Sharga says. Another 1.5 million mortgages are behind on payments.
Real estate is preferred by women. Nearly 55 percent say now is a good time to buy real estate, according to our research, compared to about 52 percent of men.