| As has been reported in the media lately, the real | | | | maybe not. Every location in the country is different. |
| estate market has cooled off dramatically. This raises | | | | While formerly hot markets like San Diego are |
| the question of whether you should buy now or wait | | | | definitely beginning to stagnate, other local markets |
| for a bit for prices to fall further.Should You Buy Real | | | | like Jacksonville are actually picking up. In practical |
| Estate Now?First off, timing anything in the financial | | | | terms, the first thing you need to do is evaluate |
| arena can be a bit of a misnomer. History has shown | | | | what is happening in your local market.If your local |
| that real estate is a good investment over time | | | | market is cooling down like much of the nation, you |
| regardless of when you buy. Real estate also has the | | | | are definitely coming into a better position as a buyer. |
| secondary benefit of being something you can | | | | The reason primarily has to do with the timing of |
| actually live in even if the value drops, a dramatic | | | | previous buyers during the hot phase of the real |
| difference from stocks which make very leaky | | | | estate market. Those that got in during the beginning |
| homes. While stocks can be traded on a daily or | | | | of run up, say five years ago, are sitting pretty on |
| hourly basis, the nature of homes is such that you | | | | big appreciation gains and will be able to handle any |
| pretty much have to sit on your investment for | | | | temporary dip in prices. These people are not going |
| some time regardless of how the market is going. | | | | to be interested in dumping their properties, but |
| That being said, the market always heats up again. | | | | another group certainly is going to.Imagine purchasing |
| The time it takes for it to do so is time you can build | | | | a property in March of 2006. You would have picked |
| equity in your property by paying down the | | | | up the property at literally the highest point in the |
| mortgage.If the market is cooling down now, does | | | | market. As real estate cools down, so does the value |
| this present you with the golden opportunity to | | | | of your property. Demand for homes is dropping, |
| purchase properties at a discount now? Maybe or | | | | which pushes prices down. |