What is the press talking about?
From my desk, and with input of Countrywide Home Loans
Over the past several months the "press" has been reporting both on TV and the papers that the housing market is falling and now is not the right time to purchase a home. I continue to be fascinated by these comments as they truly hold no real truth. Let's look at the facts as they are today.
I believe we can say that housing prices have fallen over the past 12 months. That could be anywhere between 2% and 20%, depending on the region in which you live. Over the same period of time interest rates have held at levels comparable to last year, and in some cases are even lower.
Since sale have slowed in the past months and inventories have increased due to rising foreclosure activity, sellers are now more willing to add some concessions for the potential buyers in the form of seller-paid closing costs, points to buy down the mortgage rate, to making the first few payments on their mortgage. So, what am I missing?
Now is the time buy!!! This is what a buyer's market is. However, the press would like for you to think if you wait, you will get even a better deal.
Politically, they don't want to see a rebound. And they could care less about your dreams.
Current data is already indicating that the fall in home prices is slowing. When the built up inventory shrinks, as it will (it always does), the market will quickly turn from a buyer's market to a seller's market, and the prices will once again be on the rise.
Therefore, if you listen the "press" you might find that your "dream house", six months from now, is higher priced, and your payment will be higher as well. Generally speaking, waiting will cost you more, more times than not.
It's a great time to buy, now. Bad news sells, and the "press" is selling a lot of it today, in every aspect of our lives.
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