Waiting for a Housing Bottom may Cost You
The only way to truly see the bottom is in the rear view mirror! The market needs to turn upwards before the bottom is defined. When you see the upturn you have already missed the bottom. If you were waiting to Refinance you may have already missed your opportunity but in a Purchase rate it’s just one factor in home affordability. A 1% hike in rates could erode your purchasing power by $10,000 for the same monthly payment! “OUCH”. Another factor is that seller assist will quickly disappear when Real Estate finds firm footing further reducing buying options and increasing out of pocket expense. “OUCH”. Again the bottom is defined by an upturn which means Home prices will also be rising. “OUCH”. Market Bottom is also local as it starts in small ways as certain neighborhoods and areas turn upward long before the bigger picture grows enough to show up on the Evening News! In the Greater Philadelphia Metro Area this is the BOTTOM! Home affordability is such that in many cases it’s cheaper to buy than rent… Waiting can be a very expensive price to pay!
By Bill Frantz