"The Perfect Storm"
If you saw the movie “The Perfect Storm” or you’ve heard your weatherman talk about fronts, pressure differences, temperatures etc coming together just right, they may produce a very rare weather event. I think we’re seeing this happen in “home sales.” If you’re a Buyer, it’s the “Perfect Time” to buy. With interest rates approaching 4%, a large inventory of homes for sale, sellers starting to negotiate in favor of buyers, a rental market that is seeing increased rent prices and smaller inventory, and banks that are learning how to handle foreclosure and short sales, it is truly a BUYERS MARKET! Not convinced?? Let’s try simple math. In the late 1970’s, I bought a house for $200,000 with an interest rate of 12.5% fixed for 30 years. Not counting taxes and insurance, that’s a house payment of $2,134.54 per month. Today, if I mortgaged $200,000 at 4.5% for 30 years, my monthly payment, before taxes and insurance is $1,013.37, A DIFFERENCE OF $1,121.17 per month.
Yes, there are some “buts”:
1.Home prices may still go down a little in the future so if you’re only going to live in the house for 2 years or less, renting may be a better option, talk with a good lender and Real Estate Agent.
2.Banks and lenders are more cautious about lending money for mortgages. You need a reasonable credit score, a good source of income and a house price acceptable to the lender. Gee, if we had stuck to this criteria in the early 2000’s, maybe we wouldn’t be in the mess we’re in now. If you’re not sure about your qualifications for a mortgage, don’t give up, talk with a good qualified lender today!
3.The inventory of homes for sale is huge and negotiating your best price is a real challenge.
So what’s the bottom line? If you’re sitting on the “fence,” waiting for the perfect time to buy, It’s NOW! And don’t do it by yourself! Find a good, full time realtor (like Me) to suggest good local lenders that will give you the best terms possible, sift through all the inventory to help find the “perfect home”, negotiate the best terms for the sale and make sure the closing process (getting the Keys) goes as smooth as possible. Believe it or not, you don’t pay any real estate agent fees, they’re all paid by the seller! Don’t wait. Call me today to talk about your next home purchase. DON”T MISS YOU’RE PERFECT STORM!
