Timing Is A Personal Thing
The right time to hunt for a home is when you are ready. That is a different time for everyone. The time that you are ready is when it is a point in your life to change your home or to buy your first home. That is a personal issue and a financial one; the two sides are interrelated.
The state of the economy and the housing market are things that cause tremendous fascination and intimidation. The certainly do have an impact on whether it is time to purchase a home or not. But it still comes back to how it impacts you as a potential buyer, this is why:
The State Of The Nation And The Markets
If the economy is going to cause you to lose income or lose your employment altogether it can be extremely traumatic and put your home at risk. This was the cause of many foreclosures in the last downturn.
The whims and surges in the housing market can also be a real hazard to the homebuyer. In the mid 2000s when prices soared and credit was easy many buyers were roped in on the belief that huge obligations to adjustable rate financing could be overcome as prices continue up and refinancing would be the way out of future high payments.
Conversely the downward turns in the housing market present opportunities to those who are positioned to take advantage. When the housing market collapsed in the late 2000s investors who had piles of cash to spare had a field day investing in properties at discount prices.
The personal financial cycle is never the same as that of the economy and the housing market. Unless you are a fictitious person that is exactly on the average, and nobody really is, you will have some factors in your personal situation that make timing in home buying a very specific and personal experience.
Three Questions For Home Buyers
The true way to determine the right time is first, to ask yourself if it is a personal choice that you would favor? Is it the right time to be tied into the obligations of home ownership and would you thrive in the lifestyle? Second, are you formally in the right financial situation to qualify for home homeownership in the community of your choice? The way to determine this factor is to speak to your bank or finance company to find out what and how much you can get pre-approval for.
Finally, can you find a suitable home in which to settle? This is down to the affordability of the market in the location where you would like to settle. Alternatively, if nothing is in your price range it might be time to cast a wider net. You’ve already decided that you want to buy a home and assuming you are pre-approved for something then it is just a matter of an affordable market.
The Short Answer To The Question
The answer to the question of whether it is safe to start hunting for a home is that it depends on you as much as anything else. As long as prices grow steadily in line with inflation there is probably not a real estate bubble to worry about. So, the true focus should be on your financial condition and then matching your pocketbook to the marketplace for homes where you would be happy to live.