People ask me all the time, “Should I wait until the market bottoms out to buy a home?” My answer to this is no. The reason is that you only know when the market has hit the bottom when it starts to go back up.
There are also other reasons, the main being interest rates. Right now, rates are hovering around 4.9% for a 30 year fixed mortgage. This would mean that a $200,000 mortgage is around $1,061/ month (excluding taxes and insurance). The current mortgage trend is rising, so let’s say that rates rise by just 1% to 5.9%. That same $200,000 mortgage will now cost you $1,186/ month, or $125 more. Over the life of a loan that’s $45,000! Got a nice car?
What’s worse is that if the market does start to improve, and it looks like it will. That house you have your eye on that will have a $200k mortgage might go up in price, so you might wind up with a $220,000 mortgage, which at the higher interest rate would be $1,304 a month….you can see where this is going.
Right now, in our market, there are more homes for sale than buyers. This means that you, as a buyer, have more control and negotiating power. However, with Volkswagen, Wacker Chemical, Amazon, and other large companies coming to Chattanooga, the pendulum may swing back the other way and cause a seller’s market.
So, to answer the initial question…..YES! If you are in the market to buy a home it just does not make financial sense to wait, unless you have more money than you know what to do with…and in that case just pay cash. For the rest of you, get out there and find that dream home. You may not have another opportunity like this again.
If you have any questions about real estate, what your home is worth, or just need to find a home; don’t hesitate to call me at 423-902-9836 or shoot me an email at David@MyChattanoogaHome.com. You can also visit one of my websites for all kinds of helpful information: www.MyChattanoogaHome.com.
I have been a Realtor in Chattanooga since 1999 and would love to help you out.
There are also other reasons, the main being interest rates. Right now, rates are hovering around 4.9% for a 30 year fixed mortgage. This would mean that a $200,000 mortgage is around $1,061/ month (excluding taxes and insurance). The current mortgage trend is rising, so let’s say that rates rise by just 1% to 5.9%. That same $200,000 mortgage will now cost you $1,186/ month, or $125 more. Over the life of a loan that’s $45,000! Got a nice car?
What’s worse is that if the market does start to improve, and it looks like it will. That house you have your eye on that will have a $200k mortgage might go up in price, so you might wind up with a $220,000 mortgage, which at the higher interest rate would be $1,304 a month….you can see where this is going.
Right now, in our market, there are more homes for sale than buyers. This means that you, as a buyer, have more control and negotiating power. However, with Volkswagen, Wacker Chemical, Amazon, and other large companies coming to Chattanooga, the pendulum may swing back the other way and cause a seller’s market.
So, to answer the initial question…..YES! If you are in the market to buy a home it just does not make financial sense to wait, unless you have more money than you know what to do with…and in that case just pay cash. For the rest of you, get out there and find that dream home. You may not have another opportunity like this again.
If you have any questions about real estate, what your home is worth, or just need to find a home; don’t hesitate to call me at 423-902-9836 or shoot me an email at David@MyChattanoogaHome.com. You can also visit one of my websites for all kinds of helpful information: www.MyChattanoogaHome.com.
I have been a Realtor in Chattanooga since 1999 and would love to help you out.
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