Buyers Shouldn't Wait on Falling Prices.
Fear of overpaying for property is common these days, but potential buyers who are frozen because they are concerned that they will pay too much should consider the following points:
- Despite falling prices, waiting for the right time to buy can be expensive. Some buyers would have more equity today if they had bought when they were first considering it, instead of continuing to rent.
- Financing rules have and are changing. Some people who easily qualified last year are unable to secure financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.
- Interest rates are headed up. If prices decline by another 10 percent, but interest rates increase by 1 percentage point, the monthly payment will be the same.
- Inventories of existing homes are shrinking in many markets and sales have shown increases over the past 3 months. Those trends could signal that the market is changing again and those buyers who are on the fence may miss an historic golden opportunity to own a home.
- The Federal Governments $8,000.00 tax credit incentive for first time home-buyers ends Nov. 30th.
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