We are often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall down the road, while others are convinced that home prices will go up.
Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have fluctuated, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, a one point rise in interest rates could cost tens of thousands of dollars over the life of your mortgage!
While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates while they are still available.
It is important to remember though that the markets fluctuate. The prices go up and down. As long as you plan to stay in your home long enough to weather out any down markets, you will normally come out ahead at the end. With that said, if you know for sure that you will have to move within next 2/3/4 years, we suggest that you evaluate the market carefully. There are closing costs involved when buying and when selling and even if the price goes up some in that time frame, you may end up losing real money!
Please give us a call if we can be of any assistance in determining how much home you can afford in today's market AND whether you should buy or continue to rent given your situation!
Thinking of buying your home, or know of friends who are? Let our full time professionals understand your needs and guide you accordingly! Your best interest is our # 1 priority and commitment Call us at 732.494.2211. On Track Realty, Licensed real estate broker! www.ontrackrealty.com