It’s an interesting time in the Mortgage and Real Estate Market. Given the condition of the market, and the time of year, we are seeing a lot of mixed signals. The key question to be answered for everyone is “are you an owner, or an investor?” Once you have an answer to that question, you will have a feel for your position in this market.
The fact is that if you are an owner, it’s likely that purchase price is not the only consideration you can make about the property you are purchasing. With interest rates low today and expected to be rising sooner rather than later, it makes sense to buy now. Additionally, if your lease is expiring, it makes sense to buy now. If your family wants to be settled before school starts in the fall, it makes sense to buy now. There are simply factors at work when you are buying a home to live in that are not present when you are an investor. There are non-financial as well as financial considerations, including continuing to rent. If you are buying a home to live in for awhile, get out there!
However, the case is a little different if you are thinking about investing in real estate. The reason of course is in the numbers, it’s always in the numbers. The fact is that based on what we see in the market, there are likely to be more, not less foreclosed properties in the market over the next eighteen months or so. This will likely drive prices lower in the middle to longer run. If that is the case, you will have a great opportunity to purchase your next investment property at a lower price. Even if interest rates rise, which they likely will, your payments will not increase dramatically because you will pay less. However, your investment basis will be lower and this will impact the price when you sell your investment. If you are an investor, wait. You likely will get a better chance down the road.
If you have questions, or want to discuss your situation in more detail, don’t hesitate to contact the Loan Officer whose name appears on the left hand side of the screen. That professional will be able to help you sift through the noise and help you make a solid decision based on information rather than “best guess” or “gut feeling”. Call or email them today.
