I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!
Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!
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 and low home prices, rather than to hope for a further break in prices in the future.
Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.
“The Primeaux Team brings over 7 years of experience to the local real estate market of Houston, Spring, Tomball, The Woodlands, Magnolia, Montgomery, Lake Conroe, Conroe, Humble, Kingwood, Galveston, Bay Area, Missouri City, Katy, Cypress, and all the other small towns in between that make up this great metropolitan area. The Primeaux Team has consistently out produced and outperformed other agencies for the past 7 years and will continue to aggressively market our client’s properties to ensure they receive the highest net price with the lowest DOM. Whether you are looking for free foreclosure listings in any of these areas, first time buyer programs, short sale and foreclosure options as a seller, commercial real estate, REO Services, or Luxury Homes, our team of specialized and highly motivated agents will always bring you primo results. “