December 03, 2009

Waiting for the “bottom” can put you over the top!

Posted to Julie Sarton

Ahh, if we only had a crystal ball we could pick the perfect time to buy a home at its lowest price. It’s been difficult to keep up with the swings of this housing market, and even the ‘experts’ differ on predictions of its future. Will asking prices continue to decline over the next six months? There’s a good chance. Will you save money by waiting for lower prices? Probably not.

The asking price of a home is only one of the components that determine the total amount you will pay monthly over the next 25-30 years. Even though prices may lower over the next six months, there’s a good chance that interest rates will start to climb; if the housing industry continues its current recovery, the government will stop subsidizing it, and interest rates will probably start to climb from the present historic lows. If the cost of a home drops but mortgage interest rates increase, chances are your overall monthly payment will increase. And, to make matters worse, if you wait until after April 30, 2010, you will have lost the chance to qualify for the $8000 first time homebuyer’s credit, or the $6500 existing homeowner credit, making those monthly payments even higher.

This is one of the most favorable buying windows in the history of the housing industry. Do the math…low fixed mortgage interest rates, tax credits, and low home prices. This may be your window of opportunity, don’t let it pass you by. Lastly, make sure you work with a qualified realtor to help you take advantage of it all.


Posted by:Julie Sarton

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