Investing In Maryland Real Estate – Should You Play The Waiting Game?
There have been numerous reports in the media over the last couple of weeks regarding weak real estate markets. There is also new data showing home loan applications at a 10 year low. With a lot of properties on the market and a shrinking supply of buyers, is now a good time to be investing in real estate in Maryland – or should you play the waiting game to see if prices drop further?
It’s a gamble and to a certain extent, it depends on how you intend financing your purchases. If your intent is to use mortgage finance, you need to be acutely aware of the negative equity trap that many investors fall into. If you can place a decent sized deposit, that is around the 20%-25% mark, then you shouldn’t have any problems.
That is not to say we are predicting a large drop in prices. With a free economy, anything can and will happen. Maryland real estate has had its ups and downs like all other markets. It has been fairly stable in recent months. The end of the tax credit will undoubtedly result in some softening of prices, but what extent is unknown (a crystal ball would be handy about now I think).
Playing the waiting game is a judgment call. Get it right and you will buy at the bottom of the curve and profit well into the future. Good quality real estate in Maryland may not have much further to drop. When buyers do come into the market they are taking their time and moving in on quality properties that are good value. Negotiations often produce even better value. If it’s quality that you are after, start looking now. The market will turn and they will be the first to strengthen.
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