Warren Buffet recently told a reporter that, given the state of today’s real estate market, if it were practical, he would now buy hundreds of homes.
An analyst on CNBC recently stated that the value of stocks connected to real estate are increasing, which reflects an increased optimism regarding the real estate market. He indicated that there were three reasons for this. Two of those reasons, historically low interest rates and home prices, have been around for awhile. But the third reason is relatively new, the cost of renting a home is going up.
So, should you go out and buy hundreds of homes? Probably only if you are Warren Buffet. But what should the rest of us do? And more specifically, what should those of us whose homes are in Chatsworth do?
Well, if you want to buy a home, then get approved for a loan, find a real estate agent you are comfortable working with, and then buy one. In all likelihood this will be the best time to purchase a home in your lifetime. There are, after all, actual, genuine, authentic once in a lifetime opportunities, and this is buying opportunity is one of them. I truly believe that.
Now, if you are considering selling your home; it’s not so easy to decide what to do. Prices are still very low, especially if you bought your home during that bubble that seems so long ago. But, on the other hand, inventories of homes are extremely low. These days many homes are getting multiple offers. The median price of homes in Chatsworth is inching upward.
Whether or not you should sell will depend on your individual circumstances. Are you going to be moving “up” in house? If so, what net profit you lose by selling you will probably more than make up by buying at a discounted price. Are you retiring? Are you empty nesting or getting ready to have a family? Will you be renting after you sell? Do you own more than one home? Each of these situations will make a difference in your decision.
Right now the median price for a single family home in Chatsworth is $400,000; in January it was $350,000. These figures are based on limited data and are certainly not official. But they do seem to indicate that prices are moving in the right direction.
So talk to your realtor© and decide what is best for you. Who knows, maybe you should buy hundreds of homes.