Charlotte NC|Buy a Home Now, Or Buy Later? You Decide
February 20th, 2008 Categories: Buy A Charlotte Home
Should You Buy A Charlotte Home Now? Home Prices, Interest Rates and Good Deals say YES!
Working on a notepad last week, I was trying to show a buyer the biggest reason to buy NOW in Charlotte- low interest rates and safety in market prices. Then, on another blog, I’m in a running argument with “Doom and Gloomer” who swears home prices will fall and the sky is falling.
And I had another Customer ask, despite Charlotte home prices rising 13 of the last 14 months- despite prices rising 4.3% in 2007, the client asked the dreaded “What if?” question, that if prices fall in 2008. I proved to her she would still come out ahead if prices fell an unheard of 5%… here is why.
If you wait until home prices begin to improve nationally, the country will be moving out of recession. As the nation moves out of recession, interest rates will rise as the Federal Reserve becomes more worried about inflation than recession and raises rates. Guaranteed. Just like they have lowered rates twice in the last 4 months to try and stave off recession.
So lets look at some examples of buying a $300,000 home, putting 20% down, with the plan you will live here 4
-5 years. Assume you have a good job and good credit:
Alternative 1) buy a home today at $300,000, and receive a 30 year fixed rate of 6.0% Your principal and interest payment will be $1,438.00
Alternative 2) Wait one year, home prices fall 5%, interest rates up .5% to 6.5%. Your Payment? $1,441.00
Alternative 3) Home Prices rise a modest 3%, to $309,000 and interest rates rise to 6.5%. Your payment? $1,562.00 or $7,440 more that alternative 1.
If you go with Alternative 2, you forgo living where you want to live AND a terrific tax break in 2008.
Alternative 3, is the worst of both worlds.
Which is better? You decide. Add to that, there are some great deals out there now. Deep discounts on new homes- and good deals in re-sales as sellers become realistic in their pricing. Plus there are short sales- I have an offer working now on a large short sale, foreclosures and pre-foreclosures.
And I’m not the only one saying it- here is a very similar argument in Time last week- more eloquently written perhaps, a little more historical precedent, but the same argument.
Thinking about moving to Charlotte?Like to see more pictures of Charlotte Homes? Charlotte neighborhoods? New Home Subdivisons? Read on…
Facing a job transfer, quality of life, or just need better weather… these are the 3 most common reasons for moving to Charlotte. Like to see more Charlotte Homes and Communities?
Want more Charlotte information? If you’ve never visited Charlotte, try my video on the right hand column,
it is fact-filled and has been well received. Then if you like try some of these category posts…
A related post- South Charlotte Homes For Sale and Appreciation Report.
Most folks like pictures, and I like taking them, so I’ve published more than 1500 pictures
divided into 45 galleries, divided by community, area
and fun things to do, see them at: Uptown Dilworth, SouthPark, Ballantyne Country Club, High Gate and more. Pictures are of Sunny Lake Norman, The Levine Musem of the New South, and our in-town University, Queens of course.
Concerned about the market? Here are couple of recent articles about the strong Charlotte real estate market by Forbes.com and ABC News
To learn more about me, and my business in Charlotte, visit TerryMcDonaldRealEstate.com, my easy to use search for houses, condos, land or multifamily~
Please don’t hesitate to call me direct with your Charlotte real estate needs and questions, 704-351-1519
Couldn’t agree with you more Terry. When in doubt people tend to do nothing, keep on explaining the facts so people are armed with reliable knowledge so they can take action that is in their best interest!
Cheers, and greetings from your blogger friend in Oakville
From an insider’s point of view… it’s hard to watch buyers sit back to “wait” for the best time, when you KNOW the opportunity is NOW! You gave some great examples, Terry.
Nice article! I find it amazing that people go on crazed shopping rampages when department stores run a big sale, but when big ticket items like homes are on the clearance isle everyone gets tight on money. NOW IS THE TIME TO BUY… even though the Charlotte makret has slowed a bit, it is such an awesome market that it is still strong and when the national market comes back around, this market will explode! It will be too late to find a deal then.
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