Dear Folks:

This is such a great question! Why should I buy a house knowing that prices are falling, and we don't know how low they will go?

Here's the answer: First, you get to build ownership in a property. If you're paying rent, all that money goes into some one else's pocket, instead of equity in a house you own.

The second reason has to do with the interest rate. Did you know that every point the interest rate increases, you can buy 9% less of a house to keep your payment the same? For example, if you were to borrow $200,000 at 6%, your monthly payment would be $1200. If you borrow at 7%, your payment would increase to $1330! If you wanted to stay at $1200 per month, you would only be able to borrow $182,000! That's almost a completely different price bracket!

Historically, we have very low interest rates right now. An increase will reduce your buying power! This week the feds don't believe they will lower the rates. So, look at it this way: At 7%, you would have to purchase a house for $18,000 less than at 6%. Do you want to settle for a cheaper house? Or the house you really want.

Thirdly, buyers are not willing to make that buying decision in today's market.With a professional Realtor who understands the negotiation process, you can get great deals - perhaps significantly below the asking price. Also, if yours is the only offer on the table, it's easier to obtain a lower price than if you're competing with a lot of buyers. Another cost saver!

Buy now, and you will be able to own your own house, building your own wealth and home equity! Contact me for more information about today's market. Amid all the woes about our current financial market, there are a few brighter sunbeams.

Mary L. Chabot - Realtor
Real Estate Agent
508-847-0654
Mary.Chabot@NEMoves.com

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