Is this a good time to buy a house?

I get asked that question a lot.

My answer is always the same. What is your objective?

Obviously, the question is being asked as a result of recent economic events. Every day we hear more and more about foreclosures across America. We see stories on T.V. about home values plummeting across the nation.

Texas, so far, has been spared the degree of loss that our fellow Americans are facing. Home values in Houston never really inflated to the same degree that they inflated in states like California, so that means they don't have as far to fall.

Trying to find the bottom in a state like California is like the difference between paying $1 million or $500K for a house. Whereas in Houston, it could be the difference between paying $400K or $375K for a house. The risk of losing out on a really good deal because one decided not to wait for the market to hit bottom just isn't that high.

If you're an investor trying to decide if you want to buy an investment property, this is an excellent time to buy. Lease rates in Houston are excellent. A lot of first time home buyers are afraid to commit to a mortgage, don't have the required down payment or don't have the credit score needed to qualify. This means they have no choice but to lease until their situation changed.

If you qualify and have the money to put a down payment on a house, then yes, this is a good time to buy. Could you get a better deal if you waited a few months? Possibly. But it comes back to the question. What is your goal? If you are ready to be a home owner, be a home owner and just enjoy your home. I have heard it said that if you want to recoup your closing costs when you go to sell, you need to hang on to your house for at least 5 years. It all depends on how quickly your house builds equity.

Getting a good deal on a house should be only a part of your objective. Loving the house you've decided to spend the next several years is probably a better objective. An experienced Realtor can help make sure you don't pay more than the market value of your house and he or she may even succeed in getting you a good deal on it.