If you purchased a home today for $218,900, put 20 percent down at 5.5 percent interest on a 30-year-mortgage then your payments would be $994.31.
If you purchased that same home next year, and the price dropped by 10 percent to $197,010 and had to pay 6 percent interest because we are coming out of a so-called-recession, then your payments would be $994.94.
Your payments would be nearly the same no matter which price you paid for the home. It is very likely that once our economy as a whole starts to get better then interest rates will gradually increase.
That slight increase will wash away all of the gains that one would get from waiting. In addition, waiting could cause you to lose the home of your choice.
Today, buyers have many options, yet when the market starts to go back up, those options will vanish. Now is a great time to buy a property.
Everyone needs to understand this so they don't miss the boat. Today, there are people who are wishing they sold two years ago.
In a few years from now, there will be people wishing they had bought today. Here are three facts that buyers must consider:
1. There is so much inventory to choose from. They can find what they want, where they want it.
2. Interest rates are very low; money is cheap.
3. Prices have fallen to unreasonable lows - good for the buyer. People say this market is bad. Think about that. It is only bad for half of the people in the market, sellers.
Two years ago, sellers were happy selling at really high prices waffle buyers were upset because they made a full price offer and the seller was holding out for a bidding war.
The buyer had to pay more than full price to buy something. The buyer was unhappy. Today, buyers are happy because they have a lot of property to choose from.
Prices are low and interest rates are low. Buyers are finding quality properties at a discount. Sellers are unhappy. So, is the market really bad?
There is almost always one group of the market that is happy and one group that is unhappy, just as it was a few years ago.
*The Carolina Forest Chronicle
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