The inventory of homes is larger than ever before and the prices have dropped considerably. Everyone seems to be speculating if home prices will continue
to decline over the next six months. What they are not taking into consideration is the effect that rising interest rates will have on their purchasing power.
Did you know that rates have only been lower than this months 30 year fixed rate 48 out of the past 447 months?
Buyer's need to remember that an increase in mortgage interest rates directly offsets any savings that they might realize by a reduced purchase price.
Let's review the savings on a single family home:
So you waited six months and saved a whopping $35,000
in the purchase price....BUT...you only saved $8 bucks from your mortgage payment. There is a balance to consider of course but this example hopefully will make some buyers consider how the "waiting game" is REALLY treating them.
If you find a home you like today run the numbers and compare what you think you might be saving if you wait for prices to drop. One of the age old mistakes in real estate and in the stock market is riding the market too long and missing the opportunities.
"Buy when everyone is selling and sell when everyone is buying"
, is still a tried and true axiom.
When you are ready to crunch numbers or to view a property, call us TOLL FREE at 800-447-2120
for friendly, no pressure assistance.
Your North Conway NH Real Estate Experts ~ Coldwell Banker Wright Realty