Is now the time to buy a home in Smithfield or Hampton Roads?

This is on everyone's mind. While I am a big believer that out of chaos comes opportunity (would you rather buy when everyone else is buying?), there are several factors which need to be evaluated before answering this question. Each person and each situation is unique.

1. What type of property? (e.g. residential, attached/detached)

2. What price range? Absorption rate analysis shows us that certain areas (as in price range) of the market are actually doing very well, showing activity, lower days on market, and stable pricing. Other areas are still experiencing well over 12 months on market and price declines.

3. What is your time horizon? This should be considered in any type of major financial decision, be it a home, land, rentals, stocks, bonds, etc. Pertaining to buying a home, however, ask yourself if you expect to be in the house for at a min. of three years. Realistically, should plan for at least five years. While any market goes through "swings" in short term trends, over time real estate does appreciate. But why take the risk in the short term? Placing a significant portion of your assests in any fluctuating asset in the short term is called gambling.

4. If you are considering purchasing a home from a purely investment decision, then calculate your after-tax return versus renting. E.g. Rent for $1000/mo. but purchase for $1,200/mo may seem like more expenses, but after taxes, you may only be paying the equivalent of $800/mo.

5. Will you be enjoy the purchase? Perhaps values may decline a little further (though any decline may be offset with increasing financing terms). Will you be happy living in the home and area? Is this the waterfront home in historic Smithfield you've always dreamed about? Or the oceanfront estate? Or the log cabin? If so, then you can wait until the valuations increase.

6. The final question you need to ask is have you called me to help you find the property? Or visited my website at www.tchurchwell.com?