Medford home prices have been decreasing for nearly four years, but they may go lower still. Ashland home prices have not fallen as drastically, but are now also within reach of many buyers. Interest rates are near all-time lows, but we’re in a recession and there is a lot of economic uncertainty. Do these decreasing Medford home prices make this a good time to buy or not? Ask me two years from now whether this was a good time to buy, and I’ll be able to give you a better answer, but it will still depend to a great degree on how you respond to the following items:
Reasons to Buy Now
- Lowest Medford home prices in 4 years. I don’t know how close to the bottom we are, but it’s hard to time the market, and when buyers start to jump back into the market demand will increase and Medford home prices will rise.
- If it’s now possible for you to afford to buy because of low interest rates (if interest rates rise later you might not be able to qualify, even if home prices continue to decline).
- This is a Buyer’s market. There are an unusually large number of homes to choose from with affordable prices. Seller’s are much more likely to take lower offers on the asking home price or to pay the buyer’s closing costs. With the number of foreclosed homes on the market it’s possible to find homes priced 10-20% under even today’s low market values.
- If you are a Medford seller who wants to move up to a more expensive home this may be the best time. It may seem like you are losing money if you sell your home now, but more expensive Medford home prices have dropped even more, so you can save more money on the new home you purchase than you lose in selling your current home.
- If, including tax-benefits, it costs you about the same or less to own as it does to rent in Medford.
- Over time, you will be able to build equity in your Medford home and one day own it free and clear, with no monthly payments at all. If you get a fixed-rate mortgage, your payments will remain the same over time, while renting home prices generally rise.
- Home-ownership decisions are not based solely on financial concerns. The emotional and lifestyle benefits of home ownership may tip the scales for you, if the lowering Medford home prices, financial benefits and costs don’t provide strong enough arguments.
PLEASE READ PART 2 for Reasons Not to Buy Now, and How to Decide