Why NOW is The Time To Buy In Charlotte, NC

The age old question everyone asks when it comes to purchasing a home is: "Should I buy now or wait to see if the prices go lower?" Waiting sometimes leads to losing the house you may want. other times it works out and the seller lowers the price and you get the house at the price you want it at. But, in this market and economy should you want to buy a home or purchase a home NOW? I have toyed with this question daily. There is no real right or wrong answer. It comes down to how much of a gambling person you want to be. but there are other factors involved that can affect the purchase of a home...one of those factors is the mortgage interest rate. Currently interest rates for a FHA mortgage are hovering in the high 3%'s to low 4%'s. We have NEVER seen rates so low. They go any lower we will have no interest rate. however that will not happen because of pure economics. But what impact does the low interest rate have on the purchasing of a home over the price of a house? I had a mortgage broker run a scenario for me based on principal and interest only in the payment. (since taxes and insurance are variables that are fixed). if you are looking to purchase a $200,000 home right now with an interest rate of 4%; you would pay $954.00 a month in principal and interest. Now let's say on the same $200,000 home and the interest rates was 5% (still an incredibly low interest rate). You want your payment to remain the same as if the interest rate were 4%. In this scenario you would need an additional $22,000 down payment to remain at the same payment. In essence, one point in interest rate can affect your buying power by as much as $20,000 or more. So, you may wait for the house price to lower another $5000. but what if during that time the interest rate went up even a half point (not uncommon). You still would be short $7000 to keep the payment the same..... Looking at purchasing a home right NOW in Charlotte may be a wise investment and move. Your buying power is at all time high. The interest rates are at historic lows and prices have not climbed as economists had hoped. the interest rates will have to go up and even though the housing prices may not your affordability will be less. Dave diCecco Realtor/Broker www.davedicecco.com