Is NOW the Time to Buy?

Many factors go into buying a home, but one important factor is always “Am I getting a good value?” Buyers constantly weigh all of their reasons for buying, and a few buyers are considering putting off their purchase until the spring to see where the market is headed. However, there are several indicators pointing to the possibility that right now could be one of the best times ever to buy in our area. Values have dropped over the last two years, but our local market, as well as the national market, has seen a steady increase in sales volume. The increased volume has helped to stabilize prices, both in the Inland Northwest and across the United States.

Interest rates are widely predicted to climb next year, as the economy recovers and the Federal Government winds down its program for purchasing mortgage-backed securities. At today’s rates, a $200,000 30-year mortgage would cost approximately $1,044 per month (principal & interest only), whereas in the spring if rates are at 6% the payment would jump to nearly $1200 per month. Rates fluctuate on a daily basis, but October of 2009 has seen rates dropping as low as 4.75% fixed over 30 years! The interest rate you get has huge impact on your buying power!

A recent Yahoo Finance article predicted home prices nationally will drop another 11.3% to their lowest point by June 30, 2010. This doesn’t mean a whole lot because all markets are local and unique (for instance homes in Kennewick, WA have appreciated 8.9% over the last three years and are still going up!) But for the sake of argument let’s say Spokane area prices do drop further. A $200K home purchased today at 5% fixed rate would cost $1074 per mo. (P&I). If you time the market to buy it for 10% less at $180,000 nine months down the road, but interest rates jump to 6.5% your principle and interest payment would be $1138! So if you will be financing your purchase, NOW is a fantastic time to buy! Call or message me anytime or visit our site at http://www.TheRealEstateAces.com