Should I buy or Wait in Today’s Market
Have you ever gone shopping and found the perfect item but you wanted to wait for it to go on sale only to find out that it is no longer available? It is disappointing. Housing can have the same result with decisions such as: “ We will just wait until the interest rate drops; ’ We will wait until the housing hits bottom ;’ or, ‘we will save up more for a bigger down payment’.” A lot of folks were going to wait until the interest rate dropped some more when it was 5.5%, now the average is around 6.3%. In many places the homes have actually gone up slightly, only some areas “bottomed out.” Waiting for a bigger down payment may not be a wise thing when a home can be bought several thousands of dollars less than last year. By the time the additional down payment is saved up, homes very well could have gone up. All of these things need to be weighed against your ability to pay your house payment. Another consideration is the $7500 tax credit new to first time home buyers. In addition, weigh the pros and cons of interest write offs against what your rent and house payment would be. These are just a few ideas to think about in today’s market where it is the best time to buy with large inventories and interest rates so low.
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