Is it the right time to buy a home in LA ?

[Dhruva]

I live in Covina, CA. Covina comes under LA county. I am planning to buy a used or new home in and around Covina. Currently I live in a rented apartement.


My question is that is it the right time to buy a home in LA area in view of the reports that house prices are dropping down.

What would be your advise on this one ?

Can some one provide me some direction on this front ?

[David Oxhandler]

There is no time like the present. Regardless of when you purchase there is always a chance that prices will go down or up. The main reason that experts are predicting a dip in prices is that interest rates are creeping up. The monthly payment on a home is, in most cases, the controlling factor to affordability.

None of the experts are predicting a crash. If prices do drop it will be relatively small. There wont be a huge slide. If your a cash buyer you can wait but the difference will be almost negligible, and the rising cost of installation, taxes, insurance, and everything else effected by gas prices, will wipe out most of all of the small savings you might experience. If your planning to finance, even if prices drop, higher interest rates could very well drive the amount you pay, over the years, much higher.

If your lucky enough to be able to purchase a home NOW IS THE TIME!

[Charlotte]

In leiu of Katrina and other hurricanes that have caused the loss of so many homes we are now seeing the prices of building homes increase sharply. Manufactured housing as well as stick built homes when purchased new or custom made will cost much more than they do now. We have already seen some of the impact here in PA. If you are considering a used home there is not much to worry about except for the handyman specials. Just know the estimates you make now to repair certain aspects of the home will not be high enough in 6 months or more. I feel as though the time to buy is now. Good luck and happy holiday hunting.