You may have heard or read advice that suggests you should wait until next year to buy a home because prices are likely to go even lower than they are now.
That may or may not be true. But even supposing prices do decline further, will it really benefit you to delay your purchase?
Let’s explore the issue:
- No one knows what’s going to happen with prices – or when. It’s possible these may be the lowest prices ever, and the still-low interest rates will keep your monthly payments affordable.
- Let’s say prices go down in the next year. How long do you plan to be in the home you buy now? Three years? Five years? Ten years or more? Unless you plan to sell next year, it’s irrelevant whether prices go up or down in the next 12 months.
- The most important question to ask yourself is this: Do you think prices for homes in your area will go up or down during the time you plan to own the home? History suggests that in most areas, prices of homes tend to increase over time.
- What if prices go down, but interest rates go up? Even if homes are priced lower, your monthly payment may be higher for the same home, or homes in the same price range.
You can buy a lot of home for the money, with low monthly payments, right now.
The advice offered here comes from sales associates affiliated with independently owned and operated RE/MAX real estate offices and may not be applicable to all areas. Contact an independent RE/MAX real estate agent near you for expertise tailored to your locale.
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