Just when I think the Media is too out of touch to save, they surprise me.
A Time Magazine article by Dan Kadlec, in the Right on Your Money section tells us that the sky is not falling! Wow, how about that, a guy who gets it.
His premise is when home prices are falling few people have the discipline to use that money to buy other assets, instead they spend it on consumables. And those who pull the trigger now, will benefit in the long run. He cites a great example of a very likely scenario;
"Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be!"
This articulates the point we've been driving here, THIS IS A GREAT TIME TO BUY! To further...(check out complete post here)
See my post on the Perfect Storm to find out why this may be the best time in 20+ years to buy a property.
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