Now is the time to buy real estate

By
Real Estate Agent with Schooner Bay Realty

Real estate runs in cycles like many other things, and we have been in a down cycle for over 2 years now. The prices are at the lowest they've been in 5 years. I feel we are very close to the bottom if not already there.  Yes the prices could still go lower however, with inflation concerns, the interest rates most likely will go up.  We have already started to see an increase.  Even if you were to wait for the prices to go down, the interest rates will probably be higher and your monthly payments will be the same if not higher than if you had paid a higher price at a lower interest rate.  For example if you purchased a property today and the mortage was $200,000 at 6.5% your payments would be $1,257/month.  If you wait and and get the property at a lower price and the mortage is $190,000 at 7.5% your payments would be $1,320/month. Even though you purchased the property for $10,000 less, your monthly costs would be higher. Don't be greedy.  Waiting for lower prices might not be the best deal. Now is the best time to buy.

Comments (5)

Linda DeMarino-Celona
Sellstate Innovative Realty LLC - Pine Hill, NJ

Terrance,

I absolutely agree with you. But I still have buyers who are not convinced and keep dragging their feet. I can ve very frustrating at times.

Linda DeMarino-Celona

Sales Associate-Realtor

Sellstate Realty in New Jersey

Jun 25, 2008 07:01 AM
Roseann Annis
Prudential Homesale Services Group - Camp Hill, PA

Bravo, Terrence!   Your blog explains the folly in waiting to purchase real estate while anticipating lower home prices very cogently.  Buyers don't consider inflation and resulting higher interest rates in their bottom line.  Would you mind if I copied this article and passed it on to clients who are hesitating to make the "move?"  Thanks so much!

Jun 25, 2008 07:06 AM
Peter Nikic
Broad & Bailey Realty LLC - Valhalla, NY

Terrance, good points. I think a lot of people are aware of this, but constant reminder is still a requirement.

Jun 25, 2008 07:12 AM
Neal Barnes
Starstate Realty - Killeen, TX
Broker, REALTOR, ABR, CRS, GRI, SRES, SRS.

Hi Terrance  -  I believe now is the time to buy also.  Welcome to ActiveRain.  I look forward to reading your future post.  Have a great day!!!

Oct 14, 2008 05:24 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain in 2016!

    Much has changed since your last visit to ActiveRain.  I encourage you to take another look at the website. 

    Surf some blogs, leave some comments.  Better yet, post a Blog.

    Best to you!

Feb 23, 2016 12:27 PM