According to a recent survey commissioned by Move Inc., 23% of adults plan to buy a home in the next five years and 53.5% of them are first time buyers. If you are a buyer who is thinking about buying a home or San Diego condo, here are some talking points, you can share with your friends.
Low property values make the property more attractive than renting in many markets across the country. Paying for a mortgage is now cheaper than rent in many major metropolitan areas, including Miami, Las Vegas and Phoenix to Washington, DC, as well as smaller cities like San Antonio and Fresno, California. You can add San Diego condos to that list as well.
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Buyers have the upper hand as sellers cut prices on nearly a quarter of U.S. homes sold in June 2010 says the real estate site Trulia.com. It is up 9% from the previous month and represents an overall price reduction of 27 billion dollars. Yes, a true buyers market has evolved.
Lower mortgage rates are the result of the recession in progress. What does this mean for you as a buyer? Consider a loan which has a 30 years fixed rate amount of $ 200,000 at 5%, the loan in interest paid is $ 186,512. Brings the entire loan fees $ 386,512. At 6%, interest paid will increase $ 231,676 or 24% more. At 7% the increase will be $ 279,018 or 49% more.
Investment opportunities abound; mortgage rates and home prices have fallen dramatically since March 2008. This has created one of the best accessibility for the buyer in more then 30 years. So given the numbers what do you do? There are many schools of thought on what to do, wait, hoping that the prices fall even more and interest rates remain at the current all time lows. Buy now, take advantage of the historic lows in interest rates and current market prices and lock it in. Many buyers are sitting on the fence right now wondering what the right move is?
The Truth is that no one knows for sure, nobody has a true working crystal ball, at least nobody I know. Should buyers take advantage of the current situation or do they roll the dice and hope for better financial environment latter in the year? Hmmmmmmmm.
