Is Now The Perfect Time to Become A Homeowner?

While reading a recent news article from The London Group I have come to the conclusion and have summarized that the collective mindset of the real estate market dictates the flow of the market. If the media uses the information that they put out to foster a pessimistic outlook than of course the real estate market will remain in the doldrums.

However, I believe that the market is actually clearing up and doing exactly what we at my office all expected. We hit bottom in April 2009 (42.3 percent below the peak) and then bounced off the bottom of 2009, and more in 2010 due to the government tax breaks in the first part of the year. Yes, the market has slowed in 2011, but it's not at an alarming pace like in 2008 and 2009. Any movement in the housing index of 2% in either direction is not really newsworthy. You have to look at the real estate market with long-term perspective.

While most people are quick to point their fingers at foreclosures, it really all depends on the market. The most important determinate right now is jobs and getting money flowing through the economy. This is why home sales are at a slow pace and home values have seen traction. We are not creating enough income or jobs to compel people to buy homes.

There is a silver lining though: Homes are relatively cheap, but rents have been rising. While home-ownership rates have dropped, as they should have, this is not the time to be walking away from home-ownership. It is actually an increasingly PERFECT time to become a homeowner, if your means, motivations and circumstances line up correctly.