National Unemployment Remains High ----9.5%
Consumer Confidence Remains Low----below 50% confidence
Corporate America Earnings UP but wages stagnant
And on and on!!!
So really....WHY BUY NOW??????????
For all those reasons!!! What????? Am I crazy???
No...I don't need any meds or a counseling session...
Reality sometimes is contradictory... it would appear
If you are employed and you are confident to stay employed and earn the salary you have come to know, opportunity knocks(it just not for Honda you know!).
Inventories throughout the country and even in a very sound Real Estate market like Hampton Roads are up so options are great.
Thus you can buy more home for your dollar when more homes are at 2003 to 2004 valuations and you have a great selection.
Its like going to an electronic store closing its doors at Christmas time with a huge inventory of the latest laptops. You know you must buy one as the dinosaur one you have been banging on needs to go.
Deals are to be had!!
At 5%, your principle & interest payment is so much cheaper than a year ago or so when rates were 6%!!
Impact of Interest Rates*
Loan 5% 6% 7%
$100,000 $536.82 $599.55 $665.30
$200,000 $1073.64 $1199.10 $1330.60
$300,000 $1610.46 $1798.65 $1995.91
$400,000 $2147.29 $2398.20 $2661.21
*Principle & Interest Only
As you can see, smart money would buy a home or an investment today rather than wait for the economy to heat up and to see rates and values increase.
So if you need a bigger or smaller place, need to move in or out or about a town or want to plan for the future and a change in real estate is part of the plan, WHY WOULD YOU OR ARE YOU WAITING???
I would love to know if your waiting and why you are still on the sidelines....commentary welcomed!!