"No way!" is the answer I hear from 90% of the people I ask. The other 10% wisely answer that it depends on their interest rate. Here's a simple example.
$500,000 mortgage with a 5.5% fixed rate for 30 years = $2,839 monthly payment
Let's say prices drop 10%, BUT interest rates go up just 1% ...
$450,000 mortgage with a 6.5% fixed rate for 30 years = $2,844 monthly payment
In other words, the mortgage payment is essentially the same with a 10% price decline coupled with a 1% interest rate increase.
So if you are still sitting on the fence, hoping to perfectly time the market, you may want to consider that NOW is the PERFECT time because the moment the general public agrees with you ...
1.Interest rates will go UP
2.Prices will go back UP
3.Selection will do DOWN
I don't know about you, but I'd rather buy when ...
1.Interest rates are LOW
2.Prices are GOOD
3.Selection is GREAT (actually, its very limited right now because this effect is in full swing)
The fact remains, we will not know when the PERFECT time WAS until the PERFECT time has PASSED. Don't miss out ... it's time to hop off the fence before everyone else.
Nancy Moeller, CPA, Real Estate Broker
Seven Gables Real Estate
Direct: 714 276-7006
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