Buy a Home now, the bounty won’t last.
In Madison Wi, just like in the rest of the country, The time to buy a home is now.
A number of events have converged to shrink the number of buyers; (tightening finances, lower confidence) and increase the need of sellers to sell; (job loss, inability to refinance, dropping prices).
This has led to a situation where supply and demand has never been as far out of whack.
As you see sales are down (blue, solid bars), and the months of inventory is way up(red line).
So why not wait for another year? The answer in one easy word, Interest Rates. These have been amazingly low, are predicted to start rising. See the predictions on the following Graph. (thanks to KCMBlog-Steve Harney.
Projections are that rates will go up say from 4.4% to 5.6%. Is that like a 25% increase in payments. House prices would need to go down 25% to get the same payment in 2012 as NOW.
Don’t wait, If you can buy now, do so.