Thursday, August 16, 2007

Why do buyers wait until the media says 'its time to buy' to buy?

I just read an article by Elizabeth Weintraub of About.com who made a wonderful point about buyers timing their purchases. Elizabeth questions why buyers wait for a sellers market, when competition increases and the media reports increasing sales volume, as if the media influences when an intelligent time to buy will be (we all know they spend millions on market research, predict housing increases, the weather and consumer spending, said facetiously). WHY WAIT? If you are a qualified buyer with decent credit score can you think of a better time to buy than the winter months after a downturn in the market? If you can please comment on this post. I can't. DC's prices have increased in many areas in the worst market in 7 years, job growth in and around the city is increasing by 40,000-50,000 over the next 18 months, and thats just by my amateurish research.

THE EQUATION

Increasing Prices + Increasing Job Growth + Increasing Population + Government Turnover + Slowing Development = ?

GREATER DEMAND & LOWERED SUPPLY - OR - HIGHER PRICES!!!!!!!!

I'm not saying that this city won't become affordable to may buyers (at least not yet), but if you are considering purchasing but have postponed your purchase for a later time, rethink the logic here, you just might be in for a good deal.

Read her article HERE.

2 comments:

Anonymous said...

"If you are a qualified buyer with decent credit score can you think of a better time to buy than the winter months after a downturn in the market?"

NAR themselves are forecasting a crappy '08. The best time to buy is the last time a seller will think tomorrow is going to be worse than today. I.e. Early spring 2008 assuming things don't get worse.

Jesse Kaye said...

I cannot disagree with your point. The best time to buy in a down (and worsening) market is when sellers do not see opportunity tomorrow. Every source I can find, including my own research shows DC, as an individual market/entity has shown growth and stability throughout the past year. My research shows growth rates of 2-3% in most areas and BusinessWeeks shows 4% growth from the past July to July '07. The increase in value happened in the WORST of market conditions.

If we focus solely on DC as our investment, every source I can find shows strong growth trends over the next 15-20 years, even if the rest of the country falls out.

If you are considering buying and are still skeptical, pick an area in DC that you believe had the worst conditions over the past year and I'll run a trend analysis.

I will add one more thing, many of the larger developers who have built condo buildings with 40-200 units who are nearing completion or have completed may be seeing difficult times and I will not discredit that, check the rest of the market.