REOre.com more than just a real estate company

44330 Premier Plaza Suite 100
Ashburn, VA 20147
Tel: 703-858-1126
Fax: 703-858-1125
Agent@REOre.com

5031 Backlick Rd.
Annandale, VA 22003 
Tel: 703-256-7648
Fax: 703-256-7650
realhome@erols.com








HOME > INVESTORS / BUYERS > HOME BUYING ARTICLES > ARTICLE 4.3

THE BUSINESS CYCLE AND BUYING A HOME

Should you try to "time the market?"

One problem with attempting to time your purchase to the business cycle is that no one can accurately predict the future. Another challenge is that interest rates are generally higher during a depressed market and income may not be keeping up. For that reason, fewer people can qualify for a home purchase than in more prosperous times.

Why you should not wait

Plus, this strategy generally works best for first-time buyers. People who already have a home usually need to sell it in order to buy their next one. If a "move-up" buyer wants to buy a home during a depressed market, that means they usually have to sell one during the slow market, too. If a seller wants to sell his home to take advantage of a "hot" market when prices are fairly high, they generally have to buy their next home during that same hot market.

It tends to equal out.

Finally, the business cycle can change over time. Since 1983, we have had two fairly long expansions with only a slight recession in between each. You would not want to wait nine years to buy a home, would you? You could miss out on a substantial amount of appreciation by waiting, and end up paying much higher prices.

 


NEXT >>

 

 

Serving Northern Virginia and Central Maryland since 2002

 

 

 

 

 

 

 

        2006 REO Real Estate


Home - Investor/Buyers - Asset Managers - Resources - Services - Company Info - Service Area
Property Listings - Foreclosure Properties - Contact Info - Home Buying Articles
Our Serving Area - Standard Procedures - REOre Sales Statistics - Outsourcing Services
County Public Records - MLS Data - Area Statistics - RE Sales Activity - REO Activity - Sites of Interest
Broker Price Opinions - Market Analysis - Property Management - Property Preservation - Listing Services - Rentals
Mission Statement - About Us - Contact Info - Meet the Team - Testimonials