With the stock market heading for the dumpster (a temporary move) and the real estate values declining I am constantly asked by clients "should we buy or should we wait?" The answer really depends on your personal situation but lets look at some scenerios.

Q) I am a 1st time home buyer! I look at the market and see declining values. Is it the right time to buy now or should we wait.  

A) No one can accurately predict what the market will do but remember we have been in this slump for about 11 months and as all markets are cyclical I would tend to think that we will start to come out of this deline in the next few months with very little additional downside ( my opinion only). Therefore start to look at what is out there and if you see something you really like make an offer. Don't be afraid to start low...who knows the seller might just be that motivated to move on. If you can get a good price you will be ahead of the game when the market moves up.

Q) I have an home to sell but want to buy another one. What should I do?

A) Go ahead and make the move. Lets assume that your home has depreicated 10% from its high over the past year. Well, in all likelyhoood the same is true of the home you are purchasing. Net result...even...no lose and no gain.  If you are puchasing a new home and it is a spec home that the builder has sitting you can do better than the market decline as they want to move that home. THEY ARE MOTIVATED and do not have a emotional attachment to that home.

    I recently put my personal home on the market at a 5% declne in value. However, I purchased a brand new home at 20% below asking. I negotiated and got what I wanted at the price I wanted to pay.

Q) I want to sell my home but not purchase again as I am moving in with my Daughter.

A) Don't sell yet! Wait until the market rebounds. If you are not replacing your home as in the above situation you will be a loser. The market will rebound and you will make more money on the investment. So again if you do not need to sell immediately and can wait then do so.