Housing Market

If you turn on the news these days, you’re sure to see a story about the housing market. For over a decade, real estate values rose, and in the last two years or so, the housing market has slumped. There’s been a rash of foreclosures, and it’s easy to find a dozen or more articles explaining the burst in the housing bubble.

It’s all enough to scare any potential buyer away from the housing market, but is that really the best choice?

Before buying, take a look at what you want the purchase to be for you. Are you buying a home, or a work space? Are you planning on living in the house, or renting it out? How long do you intend to occupy the property? How much of a down payment can you make, and are you depending on short term equity to recoup your investment?

These questions will make a big difference in how you view the housing market. If you are looking for a relatively short term investment, or if you don’t have much cash available for a down payment, then the housing market might not be right for you right now; it is volatile, and it is moving downwards. On the other hand, if you are looking for a long term investment, you have a good down payment available, and you are not depending on short-term equity, then the housing market, with it’s currently depressed prices, might be just the right place to go.