Sunday, October 28, 2012

Home affordability

Are we at or near the bottom of the market? I think so. I attended a national Keller Williams training a few weeks ago and speaking to Realtors in other markets I am starting to get the impression the worse is behind us. Some of the states that were hit the hardest seem to be on the rebound. 

While we won't know for certain when the market has hit its lowest point and starts moving up, most experts believe that interest rates can't go down much if any. That is a very important consideration to take into account. Lets say you are looking at a house currently listed at $200,000 and interest rates are 3.5 %. You think the market has not quite bottomed out and you are going to wait until it drops some more, say to $190,000. In the meantime interest rates tick up to 4.5%. You have cost yourself a lot of money with the increase in interest rates even f the price is reduced to $190,000.

When you consider interest rates, home affordability is at or near an all time low. What are you waiting for?
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