Great CNBC article today poses the question "Is now the time for some home buyers to make a deal?" Before I even read the article I knew the answer was an unequivocal yes. Let's face it, you can't pick a better buyers market and most cases you're in control. It's almost impossible to time a bottom and who know's when or where that bottom will come? More importantly, how much longer will mortgage rates stay low? Consider this. If you're a buyer looking to purchase in the neighborhood of $500,000, with a 20% down payment you can score a loan at 4.75% fixed. That means that your monthly payments will amount to about $1900 - plus taxes and maintenance. Pretty good right? Now look at this.
Say that in 5 months that same $500,000 property you were looking at depreciated 5% and is now available for $475,000. If rates went up just a quarter of a percent to 5% and you put 20% down, that same property will cost you the same $1900 a month plus maintenance and taxes. If rates went up to 5.25% (1/2 of 1 percent) your monthly payment now becomes $2493 plus taxes and maintenance.
Shows you how significant low interest rates are and how they are directly related to this market. There are buyers taking advantage and negotiating great prices. Just think, our parents purchased their homes paying 9 and 14% interest rates on their loans.
What goes up must come down, and what goes down must come up.
You're In The Driver Seat!MLS Inventory Shot
In Downtown Jersey City and Hoboken
Studios 29
1 Bedrooms - 356 Available
2 Bedrooms - 495 Available
3 Bedrooms - 96 Available
Single Family - 43 Available
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