Have you noticed your clients “sitting on a pole” waiting for the tide to go out? Sure – the correct statement would be “sitting on the fence” waiting for prices to continue to fall? Houston area Realtors representing buyers in the Houston Texas market are well aware of the effects that waiting to purchase will have on the housing recovery throughout Texas.
But – the real question is whether home buyers understand the “true cost” of money and how waiting to purchase a home will negatively impact their overall “wealth position” in the long run as interest rates increase?
It is true that a 1% increase in interest rates negates a 10% decrease in the price of the home as the payment will be the same each month today versus waiting for home prices to fall (“click” on Chart below and view highlight in yellow).
Even if prices decrease 10% and interest rates increase by as little as ¼%, you lose! Why miss out? The cost to wait will end up costing so much more in the end – thus negatively impacting your family’s “wealth position” as you amortize your mortgage over a 15, 20 or 30 year period!
The point is clear – Now is the time to buy! Rates are expected to go up and prices are at or almost at their bottom. Rental prices are increasing. In 78% of the Country is it cheaper to own than rent. It’s a buyers’ market but deals won’t last.
If you don’t believe the numbers above, check out the following publications (print date) that have recently published articles to substantiate the above:
- Forbes Magazine (6/3/11) – 9 Reasons to Buy a House Now
- Wall Street Journal (6/4/11) – Why it’s Time to Buy
- National Public Radio (6/8/11) – It’s Still a Good Time to Buy a Home
- CBS Money Watch (6/8/11) – Why the Time to Buy is Now
Well informed Realtors understand the great impact on “Wait vs Rate” and have shared this information with their buyers. Now is the time to buy!
Are your sellers or buyers in need of “free” mortgage consulting prior to selling or buying? Be sure to call our office at (713) 528-0333. Get out there!