You Want to Buy a Home. . .So, Why Are You Waiting?

You want to buy and you have heard that home prices are really low and there are some good deals out there with all the foreclosures and short sales.  Perhaps you have also listened to some scary advice from TV financial pundits who are saying not to buy right now because prices are going to drop even more . . .and the economy is in bad shape, and Wall Street isn’t doing so well, yada, yada, yada.  Here are some things I want you to keep in mind:

1. The real estate market is LOCAL!  National TV personalities are speaking to the whole country and can’t possibly say anything worthwhile for any particular local market.  Also, they are there to get ratings and if they can say things that are inflammatory and perhaps controversial (like one who I won’t name who told people to stop making payments on their mortgages – yikes!) more people tune in and the networks are happy.

2. Home prices may or may not come down – no one really knows that for sure.  What I do know – home prices are the lowest they have been in years.  It’s like a clearance sale at the mall!  In time prices will go up – how do I know this?  Because history is a good yardstick and historically the price of homes is up/down/up/down/up like a wave.  It makes much more sense to buy when the prices are low – not when they are high!  Problem is, if you think you can time the market, you won’t know when it has hit bottom until it starts going up again – by then it will be too late to get the lowest price.

3. Mortgage rates are at jaw-dropping historic lows.  This is the one single most important factor in home affordability.  With rates this low, buyers have incredible purchasing power.  You should know that for every 0.125% rise in the interest rate, the purchase price will drop by 1.45% to keep the same monthly payment.  Wow.

So tell me now. . .why are you waiting?