As a buyer's agent in Sarasota, I talk to alot of prospective home buyers. Given the state of the market over the last 24 months, I can understand why many of them have chosen to adopt a "wait and see" attitude. Although data seems to indicate that Sarasota, Siesta Key and the area are near the "bottom", the truth is, no one knows.
However, I remember all too well the reverse situation a few years ago. Homeowners held out, waiting for the prices to spiral up even higher before they sold. All of a sudden, the buyers disappeared, and all those who waited for "the top", found themselves without anyone to sell to.
That's what worries me about this market, but this time for the buyers. As people wait for the prices to go lower, there is another number that should be watched carefully.
First time home buyers especially may be surprised to find that they could save tens, if not hundreds of thousands of dollars - simply by taking advantage of a low interest rate. Seems most people get stuck on price alone. Fact is, that over 30 years, the interest is the more compelling number. Even if home prices drop slightly lower, a rising interest rate will cause you to pay more, long term, for your home
With interest rates hovering at about 5.6% for a 30 year fixed loan, this represents an excellent opportunity for the long-term buyer to lock in.
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