Today, the market has been a little tired of bad press. The South Bay has no bad press, The real estate market is still booming and we are once again seeing multiple offers on and off the hill.
There are lots of reasons not to buy now.. Wrong.. Waiting will only cost you more money in higher interest rates 1% can do damage to the tune of $150,000.00 or more on a 30 year mortgage if the rates go up.
I hear this all the time, the speculative buyer that is waiting for the market to drop. Yes , you might see a drop of 5% which by the way is 50,000.00 on a $1,000,000.00 property. But what about the risk you are taking if th e interest rates go up and you plan to stay in your home for more than 10 years.
If you do the math, with a 1% hike in interest rates, you will save no money and it will cost you more to wait.
The Consumer forgets about the days when the real estate interest rates were as high as 17% the first year I became a Realtor. Yes, that was in 1982.. I also remember the days in the 1990's when my buyer was in escrow at 9% and then due to the banks undergoing a crisis, my client was caught up in the increase of up to 11% in the 45 days we waited for the bank to perform and that increased his payment considerable. The bank was swamped with loan applications and no help and could not process the loans fast enough. Now days, we have the blessing of a lock in rate.
The consumer is so lucky to have such a low interest rate that they should not be greedy and take advantage of it. My real estate experience has showed me that You never know when the real estate market may change and the rates will change. We are never going to incur a a bad market unless we need to sell in it. If you are current homeowner moving up or down, as long as you hold on to your property, You will never be hurt in the real esate market.
Happy House Shopping.....