Today, with the real estate market in turmoil, many buyers are worrisome about buying a home because they are haunted by one serious question: “What if I buy a home now and then prices drop?”
With the current real estate market, this is a valid question. The fact of the matter is, we don’t know for sure if prices have hit rock bottom.
But, this is a question that should only concern you if you’re buying for short-term investment – not if you’re looking for a home to live in for at least the next several years.
The primary questions you should be asking yourself right now are these:
- Can I comfortably afford the payments on this house?
- Do I qualify for a fixed rate mortgage?
- Do I love this house enough to want to make it my long-term home?
- Am I willing to be responsible for home maintenance?
If you answer yes to these questions, then it doesn’t matter what the market does in the short term, because eventually prices will go up and interest rates will go up – making the same house cost far more than it does today.
In addition, your income is likely to rise over the next several years, making today’s fixed rate payment even more affordable tomorrow.
Prices could go down tomorrow, or they could begin to rise. Interest rates aren’t likely to go down any further, but they ARE expected to start going up just as soon as the economy begins to improve. And the difference between your payment on $100,000 at 5% or at 6% is about $63 per month – or $756 every year.
So when you find the right house and the payment is easily within your range, it’s time to act.
Give me a call at 858-342-9292 and I’ll be glad to tell you about the homes available in your preferred location, and answer any questions you might have about the home buying process.
P.S. Remember, when you work with me as your buyer’s agent you have a guide and an advisor – at no cost to you.