Valerie Baker, a real estate professional in Spokane, WA wrote this very compelling, clearly explained post about why buyers should be careful about putting off their purchase. Read and decide if buying now makes sense for you.
November, 2010. A young couple visits an open house. They indicate that they are seriously looking to purchase a home, but are not in a hurry. They feel that rates and home prices will go down even further.
I acknowledge it is possible that rates will go down a little lower than the historically low 4 to 5% range where they have been hovering, BUT there is also a very real possibility that they will begin to rise in the not-so-distant future. And while there is a bit of wiggle-room on the downside . . . there is a wide-open range on the upside! Check out this link to the past to see how mortgage rates rose for many years!
As for home prices, they are holding fairly stable here in Spokane. So far the median & average prices through October, 2010, are both down approximately 2.9% compared to the same time period of 2009. Considering the great number of low-priced homes sold as a result of the tax incentives earlier this year (which are most likely pulling the average and median down) this is not a large drop in home prices. Actually, by the end of the fourth quarter, our 2010 yearly median and average could be even closer to 2009 levels. Spokane is not an area where the housing market skyrocketed to obscene levels. Perhaps for that reason, the fall has not been as harsh as in some other areas of the country.
REWIND to November, 1980. A young couple visits an open house. They are very anxious to purchase a home as soon as possible before interest rates climb even higher than the current rate of 14.2% (and climb they did to a high of over 18% in the third quarter of 1981)! Lucky for them, their parents are willing and able to lend them the 20% down payment required by almost all lenders.
In the early 80’s market, not only were interest rates skyrocketing, but home prices were doing so in many parts of the country. First-time homebuyers were willing to consider ANY house they could get into even if it needed more than a little TLC! They felt an urgency to purchase NOW or be left behind as homeownership escalated well beyond their reach. If that happened, they were forced to pay outrageous rents or move to parts of the country where homes were more affordable.
If home ownership is important to you, don’t take the chance of waiting too long! You cannot know when the bottom is reached until the rates and prices start rising. Today in Spokane there are many desirable, well-priced homes to choose from. Do you think sellers will still be inclined to sell their pride and joy at today’s cut-rate prices and negotiate to your benefit when there are real signs of an improving market?!!
Call me today and let’s start working towards getting you into your Spokane dream home. Buying a home is not something you will do overnight. The process and the search for your perfect home often takes some time. And if, during that time, the market hits rock bottom?
YOUR DUCKS are all in a row and you are ready to jump in the game!
And if the market starts creeping up?
Well . . .YOU have a head start in the race to buy before prices and rates escalate too much!
Exit Real Estate Professionals
3124 S. Regal, Suite 201
Spokane, WA 99223