The Real Stuff: 5 reasons it’s smarter to buy than rent #4
5 reasons it’s smarter to buy than rent
The market may have already bottomed – When buyers say they’re afraid the market hasn’t bottomed yet, take a look at your local market in their specific price range. Look at the number of months of inventory now vs. six months ago and one year ago. If the number of months of inventory is declining, that lets you know that you may have already reached the bottom of the market. On the other hand, if the number of months of inventory is still increasing, then there’s a good chance you haven’t hit bottom yet.
How much further do you believe the market will drop as a percentage. Most people think under 10 percent. If today’s buyer has to pay an extra percentage point in their interest rate it will cost them 25% more in interest over the life of a 30-year loan. Buying now, assuming that they keep the property, saves them 15 percent of their loan amount, even if the market declines by 10 percent.
Guess what! Central Arkansas has reached the bottom & activity is starting to ‘creep’ up…..as are interest rates. If you are interested in buying a home, waiting could cost you!
\nBy: on April 25th, 2012 Category: Uncategorized