To buy or not to buy in today's housing market

Mercury News recently discussed how to decide if the current housing market is a good time to buy a home. While many buyers may want to wait, assuming the market has not hit bottom yet, others may find the low prices and their current financial situation will enable them to purchase a home.

Jed Smith, managing director of quantitative research for the National Association of Realtors, told the news source no one knows when prices will bottom out, but many local markets appear to have hit that mark.

"Prices are fairly low and interest rates are hovering at historic lows," Smith said. "But real estate is very local. It is not just a question of state or city, but ZIP code."

While the nation experienced a decline in median home price of 4.6 percent in the first three months of 2011, some local markets are experiencing greater depreciation in home values, according to the National Association of Realtors.

J.D. Power and Associates recently released a survey that found if a homebuyer is ready to make a purchase, he or she should find a real estate agent via referrals. According to the report, homebuyers are less satisfied with their real estate company services in 2011 than they were in 2010, with a six point decrease in overall satisfaction over the last year. The main cause of dissatisfaction was the agent or salesperson, as they are the most influential aspect of the buying experience.

Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates, said, "Agents who properly manage client expectations around the home buying process and communicate with the clients about potential challenges - such as higher requirements for down payments, tighter loan standards and additional costs on top of the monthly mortgage - may be better able to keep clients satisfied." 

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