Is this the time to buy or stay safely on the sidelines?

WASHINGTON – With humble apologies to Shakespeare, the question in today’s housing market is “To buy or not to buy?”

Right now, there are several compelling reasons for anyone who needs a house or wants to upgrade his or her family’s current living arrangements to venture forth. At the same time, there also are perhaps even more compelling reasons to remain on the sidelines at least a little while longer.

Of course, buying a home at any time, good or bad, is an intensely personal decision based on any number of factors. So, to help you sort through the process and determine what’s right for you, here’s a list of yeas and nays.

First, why now is, indeed, a great time to buy:

* Selection: A few years ago, when houses were flying off the shelves, would-be buyers had to move at warp speed to get what they wanted. Now there are a record number of new and existing homes on the market – in just about every price range and style, in just about every neighborhood. The options are plentiful.

* Interest rates: Loan costs are extremely attractive. You can find fixed-rate, 30-year conforming mortgages at less than 6%. Jumbo loans are a little more expensive, but not by much.

* Competition: There simply aren’t nearly as many buyers as there used to be. Professional investors who knew what they were doing have all but vanished, and those who thought they knew what they were doing are home licking their wounds.

* No bidding: Unlike the halcyon days, when buyers were falling all over themselves in an effort to outbid one another for that prized house, today’s purchasers are not likely to go up against anyone else.

* Patience: The gold rush is over. Now you can take your time, look at all the houses you want, go home and mull over the choices.

* Due diligence: Similarly, once you find a house worthy of your consideration, you can hire an independent home inspector to examine the place for warts. Sellers fully expect you to exercise this right. Some builders are now welcoming home inspectors, whereas they have been persona non grata in the past.

* Fixes: With an inspector’s report in hand, you can go back to the seller and tell him or her to repair whatever defects may have been uncovered. You shouldn’t use the findings as a laundry list of demands, especially when it comes to inexpensive cosmetic fixes. But sellers now are more willing to mend serious problems.

* Bargaining: Everything today is up for grabs. Certainly, you can make an offer that is somewhat below the asking price. Realtors report that the list versus price ratio is about 95%. But other things are on the table too. Apart from repairs, you might want to ask for help with closing costs.

Now, here’s why, even if all of the factors above line up in your favor, you may not want to buy at the moment:

* Falling prices: This is far and away the key issue for most buyers. Above all else, there is an overriding concern that housing values haven’t yet reached bottom. Even folks who plan to live in their new digs long after the nose dive ends are afraid to pull the trigger for fear that prices still have further to fall.

* Doubt: Uncertainty about the economy is another troubling issue. If you are concerned that your livelihood is in jeopardy, you certainly don’t want to take on a major financial obligation.

* Financing: Interest rates may be great, but financing for people who have more than a few dings on their credit records has all but disappeared. And if it is available, it is expensive.

* Sellers: Some sellers still don’t get it. They have yet to grasp the fact that prices have fallen and that they are going to have to be a little more amiable to the bargaining process. Even some builders, who should know better, are holding out.

In that case, you might have to move on to your second choice.

Lew Sichelman, who has been covering real estate for more than 30 years, can be reached at lsichelman@aol.com.