Should You Buy a Home or should you rent?
If you are planning to live in your new home an average of seven years or more then it almost always makes sense to buy rather than rent, in practically any market.
Why?
First, if you are thinking about delaying a purchase because you want to "time the market" to get the very best deal, that is almost impossible to do with precision. Even if you are in an area with declining market prices, the most knowledgeable experts cannot reliably anticipate the "bottom" of a real estate market. Afterwards, they can look back and say, "The market began to turn in 1997," like it did in some areas of California that had a tough market in the nineties. Before the turn, though, no one knows.
Second, if you aren't an owner, you're a renter. Renting is just throwing money away. You don't get to reduce your income taxes by itemizing deductions like property taxes and mortgage interest.
As a renter, you are limited on what changes you can make to your living quarters. As an owner, you can paint your living room, replace your carpet to hardwood floors, change light fixtures, garden and landscape. You can do whatever you want that makes your home a comfortable place for you and your family. It's your home, not a temporary place to sleep and eat until you do buy a home.
Third, interest rates are very low right now. If you wait, interest rates could be higher. That means your monthly payment could be higher, too. No one can predict rates that far in the future, of course, but rates are very low right now.
Best of all, there are LOTS of sellers out there right now. Inventory is high. If you make an offer, ask for incentives to buy that particular home.
For expert real estate advice call Chris at Remax Accord at 925-997-7653. Chris can even recommend a few lenders who will talk to you and explain what you can request in financing incentives.