Since the peak of home sales in 2005, there has been an emergence of 2 types of buyers for real estate in today's market.
One type of buyer is the buyer that does not have to sell a home to buy another one. The 2nd type of buyer is the buyer that has to sell their home first. If you fall into the first catagory, you are definitely in a good position to take advantage of the history low interest rates and lower than average home prices. Now is the time to buy!!
On the other hand if you are a "move up" buyer that is looking to move up into a bigger, newer or more expensive home and you have a home to sell, what a strange predicament you are experiencing. It is time to do the math. Ask yourself ....
1. Will it make financial sense to go ahead and take a small loss on your current homes value so that you can reap the benefit of a tremendous savings on your monthly payments because interest rates are so much lower than they were 5 or 6 years ago?.
2. How much am I gaining by purchasing a move-up home now which is currently below normal market value (due to all the forclosure and short sale activity going on at this time). In other words, say in 2005 at the peak of the market your home was worth $200,000 and today it only worth $180,000 ( 10% less). That is a $20,000 loss. But on the other hand you can now buy a $250,000 home with everything you dreamed you wanted for only $225,000 (10% less or $25,000 savings) plus with todays lower interest rates, your payments will stay about the same as what you currently are paying and equity will more than likely build if you plan on staying put for a while.
For most, it will all seem to make financial sense to stop stalling and make your move now. Real Estate is like the stock market in one way, it goes up and down. Today the market is down, but it won't stay this way forever and soon home values and interest rates will be on the rise again. Investing in your future now, will pay off later with the gain in your homes equity and the value of having a low interest rate. Think about it ..a low fixed rate interest rate could possibly be very attractive to a future buyer to assume should the rates go above 8%. Yes rates can go above 8%, remember when they were 16 to 18% back in the mid 80's? Oh sorry, I guess I am giving away my age. Bottom line: Call me for a free consultation on how I can help you decide if now is the time to buy and to get a free list of homes available in your price range to see how much more you can get for your hard earned $'s.
Now to answer the question, Is it worth it to buy a home in this strange housing market or should I wait? YES IT IS, if.. you have stable income, good credit and do not want to move again in a short time period. It is also well worth it if you are an investor. Now is the time to build your real estate portfolio.
One type of buyer is the buyer that does not have to sell a home to buy another one. The 2nd type of buyer is the buyer that has to sell their home first. If you fall into the first catagory, you are definitely in a good position to take advantage of the history low interest rates and lower than average home prices. Now is the time to buy!!
On the other hand if you are a "move up" buyer that is looking to move up into a bigger, newer or more expensive home and you have a home to sell, what a strange predicament you are experiencing. It is time to do the math. Ask yourself ....
1. Will it make financial sense to go ahead and take a small loss on your current homes value so that you can reap the benefit of a tremendous savings on your monthly payments because interest rates are so much lower than they were 5 or 6 years ago?.
2. How much am I gaining by purchasing a move-up home now which is currently below normal market value (due to all the forclosure and short sale activity going on at this time). In other words, say in 2005 at the peak of the market your home was worth $200,000 and today it only worth $180,000 ( 10% less). That is a $20,000 loss. But on the other hand you can now buy a $250,000 home with everything you dreamed you wanted for only $225,000 (10% less or $25,000 savings) plus with todays lower interest rates, your payments will stay about the same as what you currently are paying and equity will more than likely build if you plan on staying put for a while.
For most, it will all seem to make financial sense to stop stalling and make your move now. Real Estate is like the stock market in one way, it goes up and down. Today the market is down, but it won't stay this way forever and soon home values and interest rates will be on the rise again. Investing in your future now, will pay off later with the gain in your homes equity and the value of having a low interest rate. Think about it ..a low fixed rate interest rate could possibly be very attractive to a future buyer to assume should the rates go above 8%. Yes rates can go above 8%, remember when they were 16 to 18% back in the mid 80's? Oh sorry, I guess I am giving away my age. Bottom line: Call me for a free consultation on how I can help you decide if now is the time to buy and to get a free list of homes available in your price range to see how much more you can get for your hard earned $'s.
Now to answer the question, Is it worth it to buy a home in this strange housing market or should I wait? YES IT IS, if.. you have stable income, good credit and do not want to move again in a short time period. It is also well worth it if you are an investor. Now is the time to build your real estate portfolio.
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