Nowadays, we are bombarded by the media with a lot of negative information about the real estate market. Due to this, a lot of buyers feel they should wait for prices to come down more before buying their home inspite of the fact that it is a buyer’s market. But do we really know when prices have bottomed out? Or is waiting the best thing to do now?
Let me share with you a 5-part artice by Craig Guillot I read from BankRate.com, dated April 29, 2008, “Timing Market big risk for first-time buyers”. Craig says, “they (buyers) may be outsmarting themselves….Some experts say the values still have along way to fall, leaving potential buyers wondering if they should hold out for lower prices. No doubt that’s a good question, but waiting also caries the risk that interest rates and home prices could start rising. Expert say timing the market correctly is almost impossible and that for a traditional homeowner–who should be taking a long term outlook approach–timing is irrelevant.”
He further states that inflation risks cause the long term rates to rise since it is not determined by the Federal Reserve but by the global bond market. When the Fed cuts short term rates to help the failing economy, long term mortgage rates may actually rise. Lawrence Yun, chief economist for the National Association of Realtors, recommends that potential homebuyers buy their home when the rates are still low. “Consumers who are relying on what the Federal Reserve is doing will be surprised because mortgage rates at times may be doing exactly the opposite, says Yun.”
If you would like to receive a copy of this informative article, just email me at: Elizabeth@HomesByLiz.com and I will forward the article to you.
Elizabeth M. Eugenio (909) 376-8615
Email: Elizabeth@HomesByLiz.com, Website: www.HomesByLiz.com
Certified Distress Property Expert (CDPE), Certified Residential Specialist (CRS), Graduate Realtor Institute (GRI)
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