Is 2011 a Good Time For Buying Homes?
Declining home prices and a low market interest rate make buying homes in 2011 a compelling idea. This is also the year that many economists expect home prices to bottom. According to Moody's houses are now more affordable then they have been in decades. In some areas of the country, prices have already gone below the levels seen prior to the housing bubble. If the buyer has a secure job and great credit in order to meet stricter lending requirements, then it would probably be a wise decision to buy now.
If you do decide to purchase a home, there are a few things to keep in mind. The total cost of the home should be substantially lower than the rent of an equivalent home. The buyer should be able to keep the home for at least ten years to command a higher price. You should not use all of your savings for a down payment as it would lock liquidity. A fixed-rate mortgage is your best bet to lock in historically low interest rates now.