When Is The RIGHT Time to BUY In A "Buyers Market"

If you have been thinking about buying in today's market but, like many others, have been sitting on the sidelines waiting for home prices to hit bottom, trying to guarantee that you are purchasing at the best possible price..this is a must read for you. 

According to the KCM Crew, although most of us believe that home prices will continut to fall in most real estate markets, it is no longer recommended to wait and may not be a good financial decision. 

Buyer's should be concered about cost and not about housing prices.

The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. 

Price: The National Association of Realtors (NAR) 4th quarter housing  research report showed home sales rose 15.4%, and prices remained stable during the year.

Interest Rates: The Primary Mortgage Market Survey was released by Freddie Mac stated that interest rates on a 30 year fixed rate mortgage rose to the highest level since the last week in April 2010.

So prices have remained stable but interest rates have risen dramatically in the last 90 days.  

What does that mean to a buyer looking to purchase a home this year?

By sitting on the sidelines for the last 90 days a purchaser lost:

• $89.44 a month
• $1,073.28 a year
• $32,198.40 over the thirty year life of the mortgage

If you buy a $340,000 home, double all these numbers.

Bottom Line

Even if prices fall another 10% this year, the cost of a home will increase if interest rates go up more than 1%. Buyers should not worry where prices are going. They should be concerned where costs will be later in the year.

The full article: The Cost of Waiting For Prices To Fall by The KCM Crew.

Pamelyn Meller

Broker Associate

Keller Williams Realty, Sun Prairie WI

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