Buyers Market

In the last several months, the inventory of homes for sale have risen and home buyers have a lot more properties to choose from but I must warn you, don't wait too long. This week the inventory of homes have leveled off and home prices are starting to stabilize so wait are you waiting for? Furthermore, interest rates have dropped in the last 6 months and the 30 year fixed currently sits at 5.625% (5.75% APR) and buydown programs are available at 4.50% (4.66% APR). Today, we are experiencing a buyer's market which home buyers are in the driver's seat and usually, you can get the seller to lower their price below list price and have them pay all the closing costs. There have been a ton of buyers who have headed to the sidelines this year waiting for prices of homes to fall further and if you don't buy a home soon you may miss the boat.

It is very difficult to pick a bottom on a stock price and buy it at the lowest price. Before you know it, the stock climbs quickly and you lost out on the gain and the same applies to buying a home. Let's just say you think home prices have bottomed out and now it is a good time to buy a home, but wait a minute, everybody else is thinking the same thing and buyers flood the market, seller's start raising their prices and stop paying buyer closing costs, and you pay more for a home and you need to bust the piggy bank to pay your own closing costs. I think it's gut check time. Rates are the lowest they have been in a year and home prices and inventories are stabilizing and if you are waiting for the price to drop a few more thousand and interest rates to drop another .125th, then you may only save $20-$30 per month on your mortgage payment if you are right. But if you are wrong, not only will you incur a higher mortgage payment but your negotiating power may slip away and you may have to scramble for thousands of dollars to pay closing costs. You make the call.