2-questions that should be asked before purchasing a home in today’s market. Remember the monthly cost of a home will remain about the same even with declines in prices because interest rates are increasing. In essence, if you want to create a home for your family and expect to live in your house for awhile, buy now!
Why should I buy if house prices are still depreciating?
Waiting for prices to reach bottom of the market while interest rates are increasing may result in a higher monthly cost and cost you more over the life of the mortgage. As per CNN:
“You can kiss those record lows goodbye,” said Greg McBride, Chief Economist for Bankrate.com
“I don’t think we’re going back to a 50-year low anytime soon without an economic collapse. Mortgage interest rates will probably never revisit those levels” said Keith Gumbinger of HSH Associates.
When will appreciation return to housing if I buy now?
Industry experts were surveyed and asked when appreciation would return to the housing market and most “experts” predicted prices to continue softening in 2011. They also predict housing prices to rise reaching over 10% appreciation by 2015.
“Buy low and sell high.” We may very well be at the low point regarding the cost of owning a home.
Those homeowners that purchased their home to raise a family and become part of a community will experience appreciation over the long term.
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