Special Times are Right Now

I have heard so many people talk about waiting until the time is right to buy or sell.  Lets put some historical perspective on this conversation. The interest rates for buyers are now at an all time low.  This Cape house built in 1932 was able to be purchased at an interest rate you can obtain today.  These are special times. A low interest rate reduces the cost of your home considerably over the course of the loan.  This translates into lower monthly payments each and every month.  It is true that the banks are making it a bit more difficult to obtain one of these loans requiring higher credit scores and the like, but for those who qualify there is no better time to get out there and buy.  Or if you have a home and are considering selling it to move to another, possibly larger home it is quite likely you can obtain a larger home for the same or lower price than you have right now.

The last time interest rates and housing rates were low at the same time was in 1978.  We here in Massachusetts remember that year because of the snow storm that dumped 55 inches of snow on our homes.  While this event may seem close to those who were homeowners at the time, the average age for new homeowners is 34 and they were two years old at the time.

Our government and many of our industries are in flux right now and that is an unsettling time for everyone, but it is true that in unsettled times those with the foresight to take advantage of the opportunity are those who succeed.  When things become more stable the interest rates will be headed back up as will with the prices of homes. It makes sense for you to consider what you can do right now rather than wait.

Many economists and real estate analysts believe that prices will not inflate for 3-5 years.  I am reluctant to believe any of these professionals.  I think we are in a very unique time and it is up to the individual to determine what they think it right for them.  What is not in doubt is what the interest rates are today and what the cost of housing is today.  Those of you who are selling are probably not getting all that you want for your home, but those who have owned there homes for 10 years of more have had incredible value added to their home.  It may be time to take your profit (smaller than it might have been a couple of years ago) and put it into a new home at a lower price with a lower interest rate.  In another 5 to 10 years you will be thrilled you did and feel very smart about your move.

Buying and selling a home is emotional.  Don’t get covered over in emotion. Think about this as a long range wealth program and see how very unique the times are right now. Call a real estate professional and tell them what your goals are.  If you are in and around the Boston area, call me and come in out of the bad weather.

Larry Lawfer

Realtor®

Director of Marketing

YourStorys Realty

larry@lawfer.com

Milton, MA 02186

972 322 7776