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

1. 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.
2. 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).
3. 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.
4. 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.
5. If, including tax-benefits, it costs you about the same or less to own as it does to rent in Medford.
6. 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.
7. 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

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. Is 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 Not to Buy Now

1. If you don’t think you will keep the home for at least five years.
2. If you believe Medford home prices will fall at least another 20% and interest rates will remain relatively low.
3. If there’s a significant possibility that you could lose your job.
4. If you’ve got enough money for a down payment on a Medford home, but have found other investments that are more attractive to you now, and you’d rather continue renting and have the opportunity to make money on those investments.
5. If it’s cheaper for you to rent in Medford, and you’re able to save every month towards a down payment or other important goals.

How to decide

1. Look at the numbers and the home prices in the Medford area. Use the mortgage calculator on the right to estimate your monthly payments for different loan amounts. Then do a rent vs. buy calculation to quantify the financial benefits.
2. Evaluate the lifestyle benefits you would expect with your own home. How much are they worth to you?
3. Before looking over Medford home prices, talk to a lender to find out how much you qualify for, how to improve your credit scores to qualify for the best mortgage rates, and if there are any special benefits available to you, such as first-time buyer incentives. You will not be obligated or have to pay anything for this service.
4. Look at home prices on-line, or ask a realtor in Medford to help you. There’s no cost or obligation to simply review home prices.
5. Consult with a tax professional or investment professional to compare costs and financial benefits of home ownership compared to other types of investments.