When is the Right Time to Buy Columbia SC Real Estate?

The right time to buy Columbia Real Estate is when you are completely ready to do so . This will not be same for every person, so it is to make your own mind up. But fortunately, there are a few things which you have to consider if you are thinking about buying a home.

One important thing to remember is:   If you have no money, then it is not the right time to buy a home.

These days many people think of buying a home and they get very excited about it, but they forget about the costs which are related to buying a home.

Eventually, some things you may be able to handle, but if you don't have the money to cover bills related to owning a home now, you should not even think about buying a home.

If you really want to buy the perfect home for you, you have to take your time searching for the right one.

Buying a home without doing your homework could mean you choose a home which does not suit your needs.

The right time to buy a home is when you are completely ready financially.  This will not be same for each buyer, so make sure you take your time and do your homework.  Talk to your accountant or a qualified financial planner to see if you are financially ready to buy a home.

How to Save More Money

You know you made yourself a promise to to do better both physically and financially this year.  Who doesn't?

If you're trying to figure out how to save enough money for that down payment on a home, maybe these tips will help get you started.

As always, if you have questions or comments about this video, please post it below using the comment link.

2008 Housing Outlook

Although home prices nationwide are down 4.2 percent from a year ago, some economists are predicting "the worst is yet to come."

Just how bad will it get? According to Fiserv Lending Solutions, the median home price nationwide is expected to tumble 5.7 percent this year, which would make it the worst year for real estate in at least 40 years.

The problem stems from that classic economic conundrum: too much supply and too little demand. As of September, some 4 million existing homes were languishing on the market - almost double the number three years ago - in addition to 523,000 new homes.

If you were hoping to sell a home anytime soon, it's a pretty grim picture.  Prices aren't expected to rebound until 2009 at the earliest, and most experts think it will take several years for home values to get back to pre-bust levels.

If you're looking to buy a home, now could be the best time we've seen in decades, and quite possibly the best time we will see for a very long time to come.

Owning vs. Renting: Still Not Even Close

U.S. house prices "likely would have to fall considerably" to return to a normal relationship with rents, says a study by one former and two current Federal Reserve economists.

The study, which doesn't necessarily reflect the views of Fed policy makers, suggests prices would have to fall 15% over five years, assuming rents rose 4% a year.  House prices would have to fall further if the adjustment took place more quickly.

The study tracks rents and home prices back to 1960 and found annual rents fluctuated at around 5% to 5.25% of home prices until 1995.  At the end of that year, the average monthly rent was about $553 (or about $6,600 a year) and the average home price was about $134,000.

But starting in 1996, home prices started to grow much more rapidly than rents.  By the end of 2006, they had more than doubled to an average of $282,000, while the average rent had risen 48% to $818.  That drove the annual rent/price ratio down to 3.48%.

That means the rent/price ratio is about a third below its long-term average.  To return to normal would require some combination of falling prices and rising rents.  The paper suggests house prices would need to fall about 3% a year, if rents grew in line with their 4% average annual growth this decade.

If you're renting now and wonder whether it would be smarter to buy now than rent, contact us for a complete analysis of your individual situation.

Housing Prices To Free Fall in 2008

In keeping with our promise not to water down reality in what we cover for you at this site, we bring you news of a Merrill Lynch report released recently that said "The worse housing financial crisis in decades is only going to get worse."

The investment bank forecasted a 15 percent drop in housing prices in 2008 and a further 10 percent drop in 2009, with even more depreciation likely in 2010.

By contrast however, the National Association of Realtors (NAR) expects housing prices to remain flat in 2008.  NAR did cut its home price estimate for the current quarter, however, to a 5.3 percent year-over-year decline, which represents the steepest drop in that price measure on record.  But NAR sees an uptick in home prices in the last two quarters of 2008.

The current housing crisis and the depreciation in home prices have pummeled the economy, with businesses and consumers cutting back on spending, raising the specter of a recession.

But for those who think that the worst is over, Merrill Lynch said that housing prices still remain comparatively high. The brokerage believes that home prices are still far above historical norms when compared to other measures such as rent or GDP.

Merrill Lynch believes that housing starts will most likely slide another 30 percent by the end of 2008 - a historic low.

We'd love to hear your comments and thoughts on the current market.  And what about the Fed rate cuts?  Do you think it will help stimulate the economy and the housing industry?  Leave us your comment below.  Your email address will not be published here for your privacy.