Consider the Whole Picture When Deciding the Right Time to Buy a Home
Posted by Bob Dohn at 3/2/2011 8:10 AM 
Categories: uncategorized
Tags: real estatereal estate projectionsreal estate salesreal estate market real estaterealtyreal estate marketmortgagesmortgage interest rateshomebuyers
Categories: uncategorized
Tags: real estatereal estate projectionsreal estate salesreal estate market real estaterealtyreal estate marketmortgagesmortgage interest rateshomebuyers
Something that is frequently overlooked in the quest to obtain the greatest value when purchasing a home is that the price of a home is not the only component of the overall cost of ownership for the vast majority of buyers. The expense of financing the purchase makes up a huge part of the total picture. While home values still continue to be soft or declining in many markets, the cost of financing those homes is on a generally upward trajectory. Recent government signals that it intends to be less of a force in home financing will likely accelerate that process. If one is thinking about buying a home, consideration should be given to the fact that rising interest rates will offset any possible future erosion in value at least to some degree, if not entirely.
Consideration should also be given to the fact that, while these are not "tea and roses" times, the overall economic trend is moderately positive. By an overwhelming majority, Americans still see value in home ownership, which means the demand is out there and it's just a question of time before housing markets stabilize and equity gains begin to return. The only item open to debate is how long that will take. While there are plenty of opinions on that question, the majority of experts seem to feel that, barring any unforeseen turn of events, some degree of stabilization will occur within the next year.
As to whether the glass is half empty or half full, that depends on your overall view of life, I guess.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
Consideration should also be given to the fact that, while these are not "tea and roses" times, the overall economic trend is moderately positive. By an overwhelming majority, Americans still see value in home ownership, which means the demand is out there and it's just a question of time before housing markets stabilize and equity gains begin to return. The only item open to debate is how long that will take. While there are plenty of opinions on that question, the majority of experts seem to feel that, barring any unforeseen turn of events, some degree of stabilization will occur within the next year.
As to whether the glass is half empty or half full, that depends on your overall view of life, I guess.
Bob Dohn
Coldwell Banker Residential Brokerage
140-A S. Roselle Rd., Schaumburg, IL 60193
Direct phone: 847-301-3126
Web: www.BobDohn.com
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