Are Buyers making a mistake?

It is clear to me at least, that "regular" buyers are very hesitant to buy property. Why do I mention "regular"?. Because the big boys who can pay cash for bulk are buying  up properties as fast as they can.  Syndicated funds are showing up left and right. So let's ask the question? What do you think they know that regular buyers do not know? I will try to answer that question here.

Bulk buyers are not worried about the "bottom" in real estate. They see the numbers today, and they like what they can get, so they buy. Regular buyers do not think like that, and are trying to time the market, to find the bottom, and thus hesitate to pull the trigger (or procrastinate?). That is a big mistake. I do not know of any specific person who has ever timed the market correctly, not even the wall street guru's, who are professionals in the indutry.

What many buyers in todays market do not realize enough is that the combination of low real estate prices, and historical low interest rates, happens maybe twice in a life time!. Buyers are also unrealistic these days in what they want to get/find. As an example, they would like to find a good "deal" in a "great" area, but are not willing to pay even todays (low) market prices. They want another discount, and if they cannot get a discount, they will not pull the trigger. Some of these people have been "looking" for over 6 months.  

And, unless they know exactly where interest rates are going to be in the future, they are paying dearly for that procrastination.  The 10 year treasury is a good indicator of where rates are going to be. Have you noticed these treasuries went up over 0.5% in the past month or so?  That ladies and gentlemen will cost you $11,160 over the life of the loan for every $100,000 borowed.  So, does it matter really if you can buy that house for $5,000 less 3 months from now, when the interest rate has gone up 0.5% ? NO is the answer.

Therefor, do the numbers NOW, and make a decision based on what you know today. You and I will not know what the price and interst rate will be tomorrow. 

Antoine