So I’ll go on the record and say that I’m not a fan of the NAR publicity/advertising campaigns claiming, “It’s a great time to buy!” However, the National Automobile Dealers Association thought it was a pretty slick campaign because the auto industry has jumped on board with one of their own “it’s a great time to buy” campaigns.
Here’s the question I have for both the NAR and the auto industry: how do you know?
Do you know my situation? Do you know how much money I have in the bank? Do you know how long I plan to be in this house? What if I can’t find the right house in the right neighborhood for what I feel is the right price?
What if I think I may lose my job, have no savings, and plan to move in 6 months anyway? Is it still a good time to buy?
I know. I’m being sarcastic here. But the point is that the decision whether to buy (or sell) a home is based on the individual…not the market. There are some positive, high-level market conditions that may make it more intriguing to buy a home (see low interest rates and high inventories), but it’s impossible to make a blanket statement like that.
I find it ironic that NAR runs ad campaigns that claim ‘real estate is local and every market is different’, but they also preach broad statements like ‘it’s a great time to buy.’ Hmmm…
Here’s my advice. Look at your individual situation: what part of the country you live in, how much money you have to put down, how long you think you’ll be in the house, etc. If you feel comfortable with your financial situation and you find a house that you love and that you can afford, then go for it. In that case, it really could be a good time to buy.
I’m obviously an advocate of homeownership…or else I wouldn’t do what I do. However, real estate is individual. Not national.
(As a side note, I think it’s ironic that both the NAR and auto industry chose the same ad campaign. Realtors and car salesman are consistently ranked near the bottom respected professions. More on this in the coming weeks…)