Answering the Age-Old Question: "Is this the right time to buy?"

US Home Price Index, San Francisco Metro

US Home Price Index, San Francisco Metro

Over the past couple of years, buyers in Silicon Valley have been asking, “Is this the right time to buy?” or "When are things going to level out?" or "I don't want to buy at the top of the market - is this the top of the market?" And having myself purchased a home in 2006, near the apex of the housing bubble, I understand this concern on a very personal level. And it is very likely the housing bubble, or more accurately, the subsequent market correction, that buyers have in mind when they ask these questions of their Realtor. The sharp decline of the market is still very fresh in everyone’s mind and no one wants to be on the edge of that cliff. 

My answer to such questions is always this: As long as you are in it for the long-haul – that is to say, you plan to hold the property for at least 5-7 years - history tells us that you will have done well on your investment.  

Remember the home that I mentioned I purchased in 2006? My husband and I sold it in 2010 for a small loss. Today that property is now easily work $300,000 more than we paid for it.  If the perils of buying a home on the brink of one of the worst economic disasters in history are negated 7-9 years later, then rest assured that you too should do fine in the long-term.

Plus, if you also consider the fact that rents are increasing at a staggering rate, leading economists continue to paint a rosy picture of the housing market in 2015,  and interest rates remain historically low - that all adds up to this being the right time to buy in my book.