“I am going to wait until the market bottoms out to buy.”
Is there ever a perfect time to buy? Yes, when you need or want to move. I hear it quite often … “I am going to hold off until the market bottoms out.” But what you don’t realize is that when the market “bottoms out” that means it is quite possibly already starting to turn around and with that can come stiff competition when making an offer to buy the home of your dreams. Everyone tends to scramble to get the best deal at that point, leaving you contending with multiple offers on the home you want — and before you know it, poof … it’s a seller’s market!
“I am going to wait to see if the rates go any lower.”
Rates are currently under 6% if you have a decent credit score! They haven’t been this low in years. I’m sure you’ve heard the saying … “You snooze you lose.” No one can predict when the rates are going to bottom out, just the same as no one can predict when home prices are going to bottom out, if they could there would be a lot of millionaires in the world and most of us aren’t millionaires. Home prices do not necessarily coincide with interest rates. For example, even if the home drops in price and the interest rate goes up, you lost money in the long term. Rates are low NOW and Spring is the busiest marketing time of the year … Why? Most people like to do their moving when their children are out of school and before the school year begins plus they have the additional cushion of their income tax refunds. If I had a crystal ball, I would see a busy spring this year even if the rates do not go any lower.
“Sellers are desperate.”
Real Estate is VERY local; markets vary across the country and from town to town. Here in Philadelphia and its surrounding suburbs I am finding that most sellers are NOT desperate. Unless there is some unforeseen disaster or the property is a distress sale, sellers are not as desperate as the media would have you believe. In fact, Philadelphia and it’s surrounding suburbs have not been hit as hard as the rest of the country. Overall, we have only seen a slight decrease in home prices and now that Spring is around the corner and interest rates are super low, I am seeing a huge increase in activity, even multiple offers on properties again! Sellers need to do their best to make their home marketable and to keep it in tip top shape to compete with the other properties for sale in their area. Price the property well always taking into consideration the way the home shows compared to other properties on the market if you cannot afford to fix up the home to show; for some tips please visit my For Home Seller’s Page! My best guess would say that the Spring market is going to be booming if the rates remain at all time lows.