Home Prices May Drop Again... Shouldn't I Wait To Buy?

Home Prices May Drop Again... Shouldn't I Wait To Buy?

In a word... NO!

Now that we have that out of the way let me expand on my answer a bit.

We've already determined,(in a previous post), that the home market, in many parts of the country, and in particular the Phoenix Metro Home Market, is in the midst of a perfect storm.

An Inventory of Quality Homes
The Lowest Interest Rates In 50 yrs.
The Lowest Home Prices In A Decade

If that isn't enough to get you "off the fence" consider the following:

Prices in the Phoenix Metro Home Market have been stable for a several months.

In some parts of the Phoenix Metro Home Market prices are on the increase and there is no data to support the idea that prices will fall anytime soon.

Currently buyers are getting a lot of home for their money.

However, there is good reason to believe that interest rates may go up and that would mean less home for your money.

Let's look at an example:

Let's say you're looking at a home* that is currently on the market for $400,000. It sold originally in 2004 for $775,000. A $375,000 discount.

*This home, (as of the date of this post), is currently on the ARMLS.

You can get a loan at 4.2%

You decide to wait and see if the home prices drop and in the meantime interest rates begin to rise. If they rise to only 6.2% (a rate that hasn't been available since the late 60's) you would need the home price to drop an additional 25% to $300,000 just to maintain the same monthly payment. The chances of that, as they say, "are slim and none".

Trying to time the market in order to hit the exact bottom is something that even professional investors avoid because it's almost impossible to pull off. And in the end, a great deal is still a great deal and there are a ton of them out there.

Email Nancy@NancyLaswick.com or call 602-793-1627 to find your great deal.