The Real Estate Center at Texas A&M,http://recenter.tamu.edu/recon/, recently wrote and article about Midland, Texas and it's low inventory of houses for sale. This morning's inventory count 187 active listings for Midland County. We have not seen this type of shortage in many years. Last year around this time we had about 360 properties listed. I remember this time last year 360 listings was considered a shortage. The city has issued more building permits for new homes than any other year. Buyers who are aggressively looking have to act quickly. As Realtors it is like a race to see who gets to show the house first and who can submit their offer the fastest. There are hardly any rentals available.
Sellers are getting at least 97% of market value and the the average day on the market was 84 for the month of February. If you have ever considered selling your house, now is a great time. The other side of the coin is that if you sell your house you will have to buy when the market is high. YES BUT, interest rates are at record lows and if you wait, you run the risk of interest rates rising and paying a lot more on interest over the life of the loan.
(The calculations below are only for EXAMPLE purposes, if you would like estimates based on your information, you should contact your local mortgage lender).
On a 200,000, 30 yr loan, around 3.75% interest, principal and interest only payment would be about a $920.00 monthly payment.
On a 200,000, 30 yr loan, around 5.5% interest, principal and interest only payment would be about a $1135.00 monthly payment.
The savings from buying now instead of waiting, if interest rates rise, is about 200.00 a month, over 30 years,that is a $72,000 savings.