I was doing an appraisal today in Bedford NH and the homeowners daughter asked me whether I thought it was a good idea to buy a house now. They want to buy a house in Manchester NH and have heard that the market is declining. Like everyone, they are afraid that if they buy now they might second guess themselves if the same type house sells for a little less next year. Trying to hit the bottom of the market is called “market timing”.
Right now, in Manchester NH and southern New Hampshire homes are selling for about 70 percent of what they peaked at a year ago. At the same time we are experiencing some of the lowest rates EVER and have some of the best programs like FHA and Farmers Home /Rural Housing and incentives like the $8,000 Federal Tax Credit and NH housing Finance Authority (NHHFA) grant money. Another word, the cost of housing (low prices, low rates and many incentives) makes this THE most affordable time to buy in years.
So let’s say you wait until next year to buy that house in Manchester NH… Yes, maybe you time it right, but unfortunately when the rock hits the bottom, the artificially goverment reduced interest rates with again rise. That means that even if you buy at a lower price, it will cost you just as much (if not more) to finance the property due to higher interest rates. When the market returns, interest rates with be higher nationally and will affect your new purchase whether you are buying a condo in Concord NH, an apartment building in Manchester NH or a beach house in Hampton NH.
Having said that, everybody is in a different position and need to make the decision that makes sense for them. If you would like to discuss the market and whether or not buying is right for you, then give me a shout at 603-644-1000 or Email Jack