Consumers often focus on price and interest rate. Not wrong, but not always right either.
"I'm going to wait for the market to hit bottom before I buy" is a common stance. Ok, so what if we have hit the bottom (let me know when we are there please), the economy improves also, and rates go back up from their current all-time lows? Here is a historic mortgage rate chart, fyi. Paul Luykx, Mortgage Specialist" created some useful tables and a calculator to run your own scenarios. As you will see, If property values remain the same and rates increase by 1% you will be paying 8% more over a 10-year period, 17% more over a 30 year period" (at 95% LTV). Or conversely, you'd need to buy at as much as 15% lower price to "break even".
Consider the cost of ownership, not just the purchase price! It's a buyer's market now, you can hunt for bargains now and get financing at all-time low rates. Once things turn (and they will) the shoe will very quickly go to the other foot.
Ian Lazarus,CRS
The Lazarus Team
The Landis Co., Realtors
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