Market Conditions in 20002>Question Details

1sttimer, Home Buyer in 20002

I am freaking out about buying. Home prices have fallen even in the 6 months that I've been looking.

Asked by 1sttimer, 20002 Fri Aug 1, 2008

Although I think I have a good deal on a nice house in an emerging neighborhood NOW, I am afraid that prices are just going to drop to about half of what the home is worth now and not emerge until after the point when I will want to sell (10 years from now). Should I just stay out of the kitchen until next year?

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Answers

1
Here are a couple points to consider:
1) Real Estate is cyclical. While prices are going to go down in the short term, if you plan on staying there for ten years, you will be able to see a profit then.
2) The most important factor that many people miss is the expected increase in interest rates. a 0.25 - .5% increase in mortgage rates will wipe out any savings from prices falling, if not even mean a greater monthly payment.

The time to buy IS now.
0 votes Thank Flag Link Tue Aug 19, 2008
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