4 FACTORS IN DECIDING TO BUY A HOME OR WAIT

The No. 1 question on the minds of most buyers I talk to these days is: Should I buy a house now or should I wait to see if prices drop further?

Amid this changing real estate market, this is an important question for any buyer to answer to their own satisfaction. It’s a difficult question. I think it depends on 4 factors:

1. Where you’re buying

Here in Los Angeles some neighborhoods have already seen significant drops. Some will see more slipping of prices. For outlying areas, it's probably best to wait. However, if you're interested in high-demand areas (anything close to the ocean, desirable communities like Santa Monica, Westside L.A., West Hollywood, Beverly Hills, etc.) the question of whether or not to wait is more difficult. There are deals to be had in those areas right now, but prices are not trending down in these desirable areas and they probably won't drop as dramatically as in the outlying areas.

2. What you’re buying

The near-term outlook for condos is not nearly as good as for single-family homes. Condo prices are more likely to continue to fall in price than single-family homes.

3. How you’re paying for it

With the federal reserve lowering interest rates and lenders loosening up their standards again, loans have become more easy to come by than just a few months ago. Whether or not you can get the loan you want right now should play an important factor in your decision.

4. How long you plan to live there

No matter where you’re buying quick flipping is definitely not a good idea. You need to keep your home at least three years, otherwise rent.