Frisco Texas Mortgage, Real Estate, Events, and more

Why It's Still a Good Time to Buy in a Cooling Market

The last few years in the real estate market are an anomaly.  The downward spiraling interest rates and rapid rise in home prices doesn't happen very often.  Sure, the market rises and falls in cycles, but the changes are generally more gradual.  The truth is that many people land themselves in hot water during an especially hot market.  They start speculating by buying extra houses for quick sales or mortgage flipping.  If their timing isn't perfect they are left holding mortgages they can't pay and homes they can neither afford to live in, or sell.

Real Estate is Always a Solid Investment

If you're willing to exercise some patience and not try to become a millionaire overnight, you can't do much better than putting your money in real estate.  As many learn the hard way, the stock market is often volatile.  If you look at trends over the years, you'll see that you can depend on property to appreciate just about one hundred percent of the time.

Not only that, but there are tax incentives not available with other investments.  So what should you do if you're considering buying a house now that the wild, hot market is cooling off in many areas?  Lots of people feel gun shy because of all the negative press.

If you're just looking to make a quick buck through a resale, this may not be the best time.  If you're in a more sensible frame of mind and plan to buy a new home to live in, by all means do it.  Don't deny yourself the joy of the house you want because it isn't going to double in value in the next two years.  

Here are four excellent reasons to go ahead with your purchase:


  • Real estate is an asset.
  • Real estate always appreciates in value even if it takes more time than you hoped.
  • There are tax incentives unlike those for any other purchase.
  • In a cooling market the buyer benefits.


So don't be afraid to purchase a home, just be sensible about it.  You don't need to be a math whiz or seer into the future to buy a good home that is also a great investment.  Of course, seeing what's happening with sellers may scare you, since someday you're sure to be on the other side of the equation.  When any type of market shows signs of change there is usually a lot of hype in the media.  if you read that it's a terrible time to buy a house, often enough, you may start to believe it.  Pretty soon there's mass hysteria and everyone's afraid to make a move.  The best advice is to not over analyze the situation.  Find the right Real Estate Professional and Mortgage Professional and proceed.

Look at the Long-Term

If you want to buy a home during a softening market, then you should definitely do it.  You shouldn't deny yourself a residence because you are concerned about the future.  It's even fine to continue investing in real estate as long as you can afford to hold onto your property for the long haul.  In fact, that's a more reliable way to grow your money than counting on quick turnovers.  Some so-called experts may disagree, but there are so many advantages to home ownership that is seems foolish not to purchase based on a fear of an unknown future.

Remember the advantages of listed earlier.  In addition, consider this:


  • If you ever face a financial emergency, using the equity in your home makes more sense than taking out a separate loan at a higher rate.
  • Home equity puts you in a better position to borrow money for another asset such as a second home, car or boat and adds to your credit health.
  • If there actually is a drop in your home's value, all the other homes in your area will be facing the same downturn, and so your actual purchasing power will not have changed.
  • If you are happy with your home, what difference does it really make if you are in a hot or a slow real estate market?


That doesn't mean you should rush out and buy a home before you can afford the payments.  Use common sense so that you don't get into a financial bind and risk losing a great asset.

Shop for Your Mortgage

Some people still believe that they don't have options when it comes to home loans.  if you haven't dealt in the real estate market in recent years, you will be surprised at the changes.  The internet is an amazing tool for researching where you want to live, what style home you want, and types of mortgages.  Eventually, you'll want to sit down and review which mortgage program best suits your needs.  We can meet together for a strategic financial review and discuss your short and long term goals so I can help you select the right mortgage.

In Conclusion... keep a cool, level head no matter what the real estate market is doing.  Evaluate where you want to live in terms of your needs and those of your family.

For example - If you have children, look into the school districts.  If you work, evaluate the commute times by car and see what alternative travel options are available.  Decide if you'd prefer community living or maybe something more rural.  In other words, don't just concentrate on how hot or cold the market is.  Follow the direction of your heart and your budget.  If you want a home and you can afford to buy it, than by all means GO FOR IT!


Are you are looking to buy or sell a home in Frisco or another city in North Texas?  If so, then I can help.  I am a licensed Mortgage Consultant located in North Texas with over 15 years experience in the industry.  I can help you get pre-approved for your new home loan in Texas and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call any time or visit my website for more details.


John Cannata    p# 214.545.5604





Are you looking to purchase a Texas home?  Perhaps you love your Texas home but would be interested in refinancing your Texas mortgage to a lower interest rate?  

I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call or visit my website for more details.

Do you want to know all of your mortgage options? Call me today and let's discuss them further.

Texas Home Loan Consultant

Always available for your Texas Mortgage and Home Loan needs!

John R Cannata    P#214.728.0449

NMLS # 322646

Texas Home Loan Expert

Frisco TX Mortgage



The views expressed on this site are mine alone and do not reflect the views of my employer.

Comment balloon 8 commentsJohn Cannata • September 19 2008 06:12PM


Wow this is a really relevant blog John and you're absolutely correct - real estate historically always appreciates - maybe not as fast as one would like, but it's a safe bet... You need to start writing articles too. You just have a way with words.

Posted by Karen Otto, Plano Home Staging, Dallas Home Staging, (Home Star Staging) about 12 years ago


  1. This is an excellent post.  I am in the process of writing one that is related....why now is a great time to sell your home.  I am hoping once consumer confidence comes back and the money fiasco is straightened out.....the market will turn around for the better.

Have a great day


Posted by Leander McClain, Cecil & Harford County Realtor about 12 years ago

Great post John - everything covered that I have been talking about for weeks while I'm standing on my little soap box. LOL Yes buyers, the time for the buyer to buy is in a buyers market! If only the media would stop scaring people!


Posted by Linda Breeding (Keller Williams Realty ) about 12 years ago

Thank you Karen.  I appreciate the compliment.  Not sure if I am 'article' worthy.  Im still working on getting 'featured' with AR.  :-)

Leander - I'll be watching for your post, as I always do.  We should see more and more confidence.  There have been many announcements and changes over the past few weeks.  Hopefully that will help.

Hi Linda.  You are right, the media has really hurt our industry.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 about 12 years ago

Great blog, one of the best I've read in the couple weeks I've been on ActiveRain. 

Posted by Mitzi & Phyllis White & Carpenter, The Dream Team (Real Estate Central) about 12 years ago

Thank you Mitzi.  I truly appreciate the compliment.  Hopefully I'll write a few more things that will interest you as well.

By the way, I read one of your post about your Open House.  I wrote a series on Open Houses ( I think it was 6 or 7 ).  Anyway, take a look and see if it can spark some other ideas for you.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 about 12 years ago

Very nice post, very informative and straight to the point.  Real estate is a great investment.

Posted by Ricki Eichler McCallum, Broker,GRI,ABR, e-Pro, TAHS (CastNet Realty) about 12 years ago

Hey Ricki.  I appreciate you stopping by and adding a comment.  It's certainly a fantastic investment.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 about 12 years ago