Is Now a Good Time to Buy?
Â Â Â Â Many home buyers are sitting on the sidelines waiting for prices to fall even further. This probably isn't a good strategy. While most pundits do expect prices to continue declining; albeit more slowly than in these past few years, the ever lurking burden of higher interest rates will eat up buying power as quickly as prices.Â
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Â Â Â Â Currently we have lower home prices, and low interest rates. While demand will probably remain soft over the next several months (possibly even years), interest rates will inevitably rise. With the rising interest rates will come lessened buying power; so that even if that $375,000 house you have your eye on today does come down to $355,000, your window to purchase may have closed due to a rise in interest rates. Where you may have qualified to purchase that house at $375,000 with a low interest rate, a substantial rise in interest rates may mean you no longer qualify to purchase the home even at the reduced price of $355,000.
Â Â Â Â If you would be satisfied with the home you can purchase today, then don't wait for that mansion two houses over to drop into your price range. You know what you can buy today, tomorrow isn't promised nor what you can buy tomorrow.