The media has scared everyone into doing nothing at all. First of all, what ever happened to buying a house as somewhere to live, to have a yard, your own garage and a nice fenced in yard for your dog. I think people have lost sight of that. Your house is an "investment" in the long run, but should not be viewed as an investment, but as your residence and place you call home. The market goes up, the market goes down. If you plan on staying in your house for a few years, than who cares. The days of the flippers and speculators are gone. If you are buying real-estate for investment, than hold for 5-10 years. If you are buying your house for your residence, then find a house that you can call home, and live your life.
Anyway, the fact that interest rates are low right now at about 5.5% is a GREAT reason to buy, regardless of what the market does on the real-estate side. Generally, the most important factor to a potential buyer is the fact that they are comfortable with thier monthly payment.
If you buy a home for $218,900 and put down 20% on a fixed 30 year mortgage, your payment is $994.31
If the market drops 10% making the price $197,010 in 1 year and the fed ups the interest rates 1/2% your payment would be $994.94
You will have saved nothing waiting a year, and you will have been living somewhere you would rather not be.
Prices may steady also, during this time, and sellers may not be as negotiable.
My name is Andy Sellers with the Sellers Connection at Keller Williams. Call me at 407-496-3916, or log onto my website at www.TheSellersConnection.com
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