Most people would say that 2011 wasn’t a great year for real estate. But the real question is, great for who? It can’t always be great for everyone, but inevitably is always great for someone. So maybe this past year wasn’t the most ideal for sellers, but if you bought in 2011, cheers to you. With historically low interest rates, lots of inventory to choose from, and competitive prices, 2011 was simply a great year to buy real estate.
No doubt 2012 will offer up much of the same for buyers, but interest rates and prices won’t remain this low forever. When deciding when the “right time to buy” is, remember that it’s impossible to time the market. After all, the only way we know that prices have hit bottom is when they start going back up. The same can be said for interest rates. Most buyers underestimate the effect that interest rates have on one’s buying power. It’s important to consider that for every 1% increase in interest rates, your buying power decreases by 10%. So don’t sit around waiting for that exact perfect time to buy when it could be now.