The article in Business Week does grab your attention.... but is it true? "If you don't buy a home now, You're either Stupid or Broke". Sometimes don't you wish you could say this to a few Buyers. I don't think they understand what a "holiday gift" this really is. Most econmic forecaster are stating that interest rates will begin to climb after the first of the year and will be 1% to 2% higher in the next 12 months.No, I really don't believe my clients are stupid... but I want to make sure they have have really looked at all the factors.
Interest rates are at a 40 year low.
The tax credit for first time home buyers and for existing home owners is substantial. ($8000 or $6500)
Inventories are falling.5 straight months of increased sales.
Here is one example that illustrates increasing interest rates and how they could affect your payment. Look at a 30 year mortgage of $300,000 at today's rate 4.875%. The PI payment is $1587. If rates climb 2% then that PI payment CLIMBS to $1970. WOW! Almost $400 a month increase.
Maybe it would be nicer said..."If you don't buy a home now, You're either Broke or Uninformed".
The market report for the 1st quarter of 2009 shows improvement..... but still a long way to go.
Inventories are still too high but sales are improving. With low interest rates, first time home buyers incentives and improving consumer confidence.... there is a light at the end of the tunnel. It is still a Great time to buy a home (if you plan to live it in for the next 3 to 5 years).
The Charlottesville Albemarle Association of Realtors just published the 1st quarter report. Things are looking up.
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