Market Report - Time to buy!

If you have been waiting for the "bottom of the buyer's market" so you could get the best deal, you may be limiting the future success of your investment. Right now, real estate prices are the lowest they have been in years and we may already be at the bottom of this current cycle.

"Timing is everything" is one of those old sayings we live by, but recognizing the right time to buy is not an easy task. If you are waiting to buy a home for your family, waiting means continuing to pay rent, rent which pays you no return. The sooner you buy, the sooner you begin to build equity.

Today's mortgage interest rates are very low, too low to dismiss. You must give consideration to buying while the current rates are available. Think about this on a $150,000 mortgage at 6.5% you will pay $948 per month for principal and interest. If you wait, hoping to save $5000 and get the same house with a $145,000 mortgage you might be successful. However, if the interest rate goes to 7% (a 1/2% increase) while you are waiting, your payment will be $966 on the same 30 year mortgage. You saved $5000 up front, but have a higher house payment? You will be paying $18 more per month, that comes to $6480 additional over the life of the loan. Maybe not too big a gamble, but...

Another consideration is that if now is the bottom of the market and you have to pay $5000 more for that house later and the interest rate is 7%, your costs will be a lot higher. A $155,000 mortgage at 7% has a monthly payment of $1032.30 or $84.30 per month more than our first example. That is $30,348 more you would pay over the life of a 30 year loan. I can think of a lot I could do with an extra $30,000 - can't you?

If you want to know the facts and "just the facts" about the housing market? Here is a link that you might enjoy. This site is sponsored by the National Association of Realtors®: http://www.housingmarketfacts.com/. Enjoy your visit there, but don't forget to return to this blog and read more articles written over the last few months about the current market.

When you are ready, my team of professional Realtors® would love to help you find your next home. If that means helping you sell a current home, we can help with that as well. You can find out all about us at UpwardRealty.com.

Copyright 2008