As a career REALTOR of more than 26 years, I thought I’ve seen it all. When I got my license interest rates shot up to 18%. That was my intro to the biz. Yet, at that time, people were still buying since seller financing became popular. Of course, those sellers all had equity in their homes and could help out.
In today’s Buyer’s Market, many sellers will need to bring money to the table at closing and have no way of providing financing to a buyer. Besides, interest rates are still so low, that isn’t needed – yet.
Don’t want to buy because we haven’t hit bottom yet?
And when exactly will “bottom” occur? I have been reading a lot lately on our current market and I keep reading over and over that we won’t know when the bottom was hit until it starts going up again. There is no way to predict it and only a few lucky buyers will actually benefit from it, just by being in the right place at the right time.
My previous post shows that I’m not worried about hitting the bottom, I know prices and rates are good right now and this was our chance of getting an affordable home in Scottsdale, AZ. If we waited 10 years until we’re ready to retire we might not be able to afford this same townhouse we purchased.
If inflation hits – rates will go up
I have read trusted real estate gurus that say we haven’t seen anything yet. Some say buy now while the buyin’ is good, others say the bottom is a long way off. Those people also say that once we hit bottom it will stay stagnant for years to come. There is no more “flipping,” real estate should now be considered a long-term investment. Anyone that purchases a property now should either be buying to stay in it a while or hold it as a long-term rental property.
If you wait too long – you might be out of the market
If you are still on the fence thinking prices will continue to drop, you could risk getting these low interest rates. If inflation hits, which many predict is going to happen because of the bailout (where money is being printed with no funds to back it up), then these interest rates could shoot up.
If you can qualify for a mortgage today at interest rates in the 5 percents, will you be able to qualify, or will you want to, pay double digit interest rates? When I purchased my first home in the 70’s, normal interest rates were 10 1/2%. We didn’t flinch because that’s what the rates were. I never thought I’d ever see single digit interest. And we might not be seeing it in a while.
Are you willing to wait and take that risk? When homes don’t sell because buyers cannot afford to buy, then rentals will become more popular. This could raise rental rates, too. You won’t own a home of your own, but you’ll continue paying rent to someone else. All because you thought you should wait until prices bottom out. Again, when do ya think that will happen?
If you want to own a home of your own and don’t want to gamble on this shaky economy, give Judy Orr a call at 708-536-8200 or use the Contact Form. Better yet, fill out the Home Finder Form and start receiving listings sent directly to your e-mail.
