When is the right time to buy home?
Rick asked:
For Los Angeles (San Gabriel Area), when is the best time to buy home, is it now or wait fall or early next year?
i planning to had a big loan, try to under 100k loan, will pay like 50-70% down if possible, so therefore price is more important than interest, also most peopel failed to notice, higher price will = higher property tax is far more than those loan %, since property tax last forever unless it got sold.
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For Los Angeles (San Gabriel Area), when is the best time to buy home, is it now or wait fall or early next year?
i planning to had a big loan, try to under 100k loan, will pay like 50-70% down if possible, so therefore price is more important than interest, also most peopel failed to notice, higher price will = higher property tax is far more than those loan %, since property tax last forever unless it got sold.
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Interest rates are creeping back up. I would say six weeks ago would have been the best time.
Assuming you wanted a home which you would need a $250K loan (after the down payment) and you waited until now to purchase. Not including taxes and insurance, you would pay over $304,047 in interest alone (@ 6.25%) during the life of the 30 year loan.
Now if the same situation was applied six weeks ago, the interest (5.875%) would have been $282,386.
That’s almost $22K difference! So IF the home went down in price by $22K, you would still be paying the same amount.
Also, the payments for the higher interest rate would be $60 more. I don’t know about you, but that’s another tank of gas.
If price is the most important element in your decision to buy, there is no precise way to determine when the market has completed its correction and prices will begin to go back up.
Many economists believe that the market has already “bottomed out”; others think that there is more to go, but since all real estate is local, the only market that matters is where you are planning to buy.
You should contact a local Realtor and ask for market statistics to determine if the current inventory is increasing or decreasing and how pricing is going- all of these are clues to how the local market is going and when you should be thinking of purchasing a home.
Good luck!