NOW IS THE TIME TO BUY A HOME!! REALLY!!
Buyers are always being told: "NOW is the time to buy!" There has never been a better time to buy than NOW!" It's kind of like the boy crying wolf--if home buyers have been told that for years now, why should they believe one more realtor trying to create urgency?
This may be the last best chance for a home buyer to get a great price at a great interest rate. The window of opportunity is now open, but it will not remain open for long.
We have a situation here--despite a spectacular run-up in home prices in the Temecula Valley this last year, it looks like values are beginning to level out. Inventory is also stabilizing to give home buyers more choice and selection.
There has also been a reprieve for home buyers in interest rates. When Ben Bernanke with the Federal Reserve talked about "tapering" the bond buying program that the Federal government has been carrying out in order to keep interest rates artificially low, the mortgage market responded with a one percent or more rate increase in May. Then Ben took it back and the market breathed a sigh of relief. Look at the rate movement and see what they have done lately. Now, this window of opportunity will only be open for a short period of time--perhaps for 90 days or so. After that point, the market will begin to anticipate tapering to start in earnest. The experts are predicting interest rate levels to reach the 5% + levels within a year.
Only one percent, you say? One lousy percent--no big deal, right? Take a look at the chart below--if home prices stay the same (which no one is predicting), on a $250,000 loan, that's a lot of money going out of YOUR pocket and going into the bank's! If you add in the projected home price appreciation, then that's a LOT of penalty to pay for waiting.