I am asked this question by renters many times in the course of a week. I would have to say hands down that the answer is YES almost every time. There are a few rare occurances when I would say no. If you currently own a home and are looking to move up it may be difficult to sell your primary residence. Also, if you have purchased in the last few years and did not put a significant amount of money down you are most likely upside down. In other words, you owe more than your home is currently worth. Not to fret. This is California and the market will come back. With prices as low as they are and unemployment raging it is going to take a while, but when it does it is going to be like a Santa Ana winds driven wild fire.
The first indicator of the market turning around in this state will be employment. When employment starts to rebound you should carefully watch migration. Once people start to move back to California demand will explode. The reason being is that there are almost no building lots being developed in the state right now. Once migration turns around and builders want to start building again it could take 1-2 years for the approval and permit process. That will drive demand higher and with it affordability will sink. If you can afford to hang on to your home and like it I suggest you grit your teeth and bear it. You made the commitment to purchase the property and signed your name. It is not the bank's fault the market fell out.
Now, why would I say YES! to buying today? Well, interest rates are rediculously low. Do you really think the price of 30 year money should be 5.5%? Would you loan your money out at that rate? With prices so low and interest rates falsely surpressed by the government it is much cheaper to own today than it is to rent. If you have a W-2 and can prove your income you would be crazy not to jump in. Who cares if the prices slide another 20%. I hear many people say they want to buy when it gets to the bottom. Like a roller coaster in the dark, you won't know you were at the bottom until it starts to climb back up again.
What about investing in real estate? Now is one of the best times in the history of California to purchase affordable rental properties that will CASH FLOW! I am purchasing properties myself. This also sets me apart from the many Agents & Brokers out there. I won't tell you it is a good deal just to sell it to you so I can collect a commission. I will tell you it is a good deal because I own many rentals here and know a good deal when it comes across my desk. I truly understand cash flow analysis and can explain what operating expenses are associated with rental property. There is a whole lot more to analyzing a property than mortgage payments and rents.
If you want quality service from an experience Broker, Investor, Buyer and Seller of residential California Real Estate get in touch with me.
I answer my phone and I return calls promptly. This alone puts me ahead of 95% of the pack. I look forward to doing business with you.