The Real Estate buying season is here, and Frisco home buyers and sellers are asking the question, is this the time to buy? I have some food for thought on that question, because the top guru in finance, mortgage, Real-Estate, or economics, does not truly know an undisputed answer. They can only debate in theory.
Home Values for Buyers: Frisco and the Dallas Fort Worth Metroplex vs Nationwide Statistics
In the recent 3-5 years, while the rest of the majority of the country saw home values drop, Frisco, the Dallas and Fort Worth area, and the majority of the state of Texas for that matter, mostly just saw a minimal decrease in value or even a small increase. In recent months, as I have closed home purchases in Frisco and surrounding cities and visited with Realtors about their market, it seems like our market has fallen a little more victim to the declining values as well of late. Even many of my refinance clients have been surprised at the value that the appraiser has put on their home.
Buy Real Estate When Markets are Low
Like the stock market, the ultimate scenario for a buyer would be to buy low, so they can sell higher later in life. Despite low interest rates and banks pulling back on foreclosures, housing values across the nation are still falling, says New York Times writer David Streitfeld. Another major concern that could have an effect on our economy and expected value of Real Estate in the coming years is America’s World Credit rankings, that have recently been “media-tized”.
Should I buy Real Estate now, or wait?
To summarize my answer to the question for local readers in Frisco and the Dallas and Fort Worth area, to buy now or not to buy, there is really two ways to look at that.
- radically- If the national deficit continues to grow out of control and America loses its AAA ranking in world credit, we could see an all out breakdown in confidence between citizens and government, and our economy could crumble. This could mean that values drop at rates that nightmares best illustrate. Mortgage rates could go up to levels that make home buying possible for very few. Bad.
- more likely- A buyer that can confidently see themselves staying put for more than 4-5 years will likely not have to worry whether or not reaping the benefits of a Real Estate purchase will come back to bite them later. If you have a home to sell, I would suggest doing the research to compare the market you are selling from to the market you are buying into. It may be best to strategically buy in a market that is down but has a future, comparable or greater than the market you are selling your home. The best scenario would be to sell yours in a market where values are good, and then buy into a market that has the greatest chances of going upward in the coming years. In comparison to the above #1 visual; if the economy gets that bad, the last worry you will have is whether or not your home is holding it’s value.