The national real estate bust has ejected families from their homes, jammed credit markets, and shackled the broader economy. But for potential buyers, the housing pain has come with a key upside: increased affordability. The S&P/Case-Shiller Home Price Indices showed that home prices in 20 major metro areas were nearly 16 percent lower in May than a year ago.
But while real estate bargains are certainly out there, anyone looking to buy a home in today’s market should proceed with great caution. After all, despite the sharp annual declines in prices, the market is far from bottoming out. “I don’t think there is a housing analyst around who doesn’t think that there is at least 15 percent of downside still [to come],” says Christopher Low, chief economist at FTN Financial. Add the sluggish economy and weakening labor market on top of that, and it remains a risky time to make one of the most significant financial investments of your life.
With that in mind, U.S. News spoke recently with a handful of economists and real estate professionals to create a list of five “Don’t Buy a Home Today Ifs.” The checklist is designed to help buyers decide whether now is the right time for them to purchase real estate.
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