Attention Buyers….It’s Time to Take Action! 

If you are a potential homebuyer wondering whether now is a good time to invest, here are some points to consider. 

There are more choices available to you in the housing market than at any time in recent history. Mortgage interest rates are at historic lows. So why pay another year’s rent on a house you really don’t want? Why sacrifice another year’s interest tax deduction? 

If you are waiting for prices to fall further, please know that interest rates could rise at any time. Home prices and interest rates do not necessarily rise and fall in sync. What I like to call “timing the market” is virtually impossible to do with any rate of success. 

There was an excellent article in the February 25, 2008 issue of Time Magazine talking about the cost of waiting. An example in the article begins with the purchase of a home today at $218,900 at an interest rate of 5.5%. They compare it to purchasing the same home a year from now at $197,010, a drop of 10% in price, but with an interest rate of 6.0%. 

The principal and interest monthly payments end up less than a dollar apart. So, the price savings evaporates with the increase in interest rates.  

Just how long are you willing to wait for prices to fall? It is entirely possible that you are costing yourself money, not saving it!