Are you waiting for home prices to fall before you act?
It makes sense to try to buy a home when you believe it has hit the rock bottom price. I totally get that. In some areas where there is additional depreciation to be played out, waiting can be the right move to make. But overall, I believe that waiting is not a good financial decision. As a buyer, unless you are paying cash, you need to be looking at Cost not Price.
What is the difference between cost and price? The cost of a home is made up of the interest rate that is paid as well as price.
The 4th quarter housing research report of last year stated that sales in America rose 15.4 percent over the 3rd quarter. With each passing day, the stability of housing prices is taking shape. As soon as Realtors, appraisers, bankers, buyers and sellers all understand the new value system then normalcy can begin take hold. Someone who delayed buying a house because of the price might find that prices have actually not decreased. They’ve simply re-adjusted to the new normal. But as Paul Harvey always said, “Now … the rest of the story.”