Buy Now or Wait?
Published March 5th, 2007 in Buyers, The MarketA reader at CNN/Money asks the question whether they should buy now and take advantage of low interest rates, or wait and see if prices are going to fall even more. The answer, of course, isn’t as simple as they would probably like. You could take advantage of falling prices to bargain your way into more concessions from a seller. And you should always base the decision on how long you think you will stay in that home. Even if the market value continued to decline after the purchase, if you plan on staying there over five years, you’ll recover and likely see the modest 6 percent gains that have been the historical norm in this country. Also, don’t take on a risky, short-term adjustable mortgage right now, because when prices do rise, your monthly payments might increase to uncomfortable levels.
