Buy or rent
Yesterday, I wrote a post about a recent trend or coincidence I noticed and my friend Claude pointed out the calculator on my website was flawed with defaults that don't coincide with current market realities. He pointed visitors to a calculator provided by the NY Times. I kidded Claude in the comments to not be analytical but just buy a house.
But I also got a personal email from another reader wondering if it was a good time to buy.
Maybe, it depends. On your personal circumstances, financial and employment situation, your credit, what you need and other issues. It isn't always an analytical decision as there are generally some emotional factors involved.
It's most definitely a buyers market, there is lots of available inventory to choose from. Many sellers are now more flexible than before and a good deal can be negotiated.
But if you're waiting for lower mortgage rates or you want to call the absolute bottom in the market, good luck.
I watch rates daily and I've personally never been able to lock at the absolute low (I've been close). Mortgage rates are still at historic lows although not quite as favorable as just a month ago.
As to the bottom of the market, well, at the New York Stock Exchange they ring the bell every morning but it isn't to announce the low is in place and stocks are now headed higher. No one can really call the low in stocks or housing, all you really want to do is to buy low and sell high. Note that I didn't suggest buying at the absolute bottom and selling at the absolute top.
That's Warren Buffett's mantra and it seems to work, after all, he is the most successful investor of all time and the second wealthiest man behind only Bill Gates. Mr. Buffett is always buying and selling during good and bad times, he just picks better than anyone else.
There are many benefits to owning a home, Historically and generally, over time, a home increases in value. If you plan to live in a home for a number of years, that works in your favor. There are tax advantages (please consult your accountant), there is pride of ownership and you can paint, landscape and fix your home the way you want it to be, not leave it as your landlord might require.
There is a time and a place in everyone's life for for buying a home and a time and place for renting. Your decision will and should be based on a number of factors; and while it is certainly an important consideration, it's not always a strictly financial decision (and I certainly understand that no one wants to buy today and watch the value of their home decline in value). But the Charleston real estate market is not in the same state of decline that other markets around the country may be experiencing.
Is it a good time to buy. Well, maybe, but it depends.