I didn’t say it – BusinessWeek Did!
The actual headline from the Business Week article is…
“If You Don’t Buy a House Now, You’re Stupid or Broke”
The article’s thesis is that home prices have begun to rise in many areas but interest rates are still at/near all-time lows. So folks should be paying much more attention to interest rates rather that trying to time the exact “bottom” of the real estate market which is nearly impossible to do – just as it is in the Stock Market. We have definitely seen a firming of prices in Ridgewood Real Estate.
Here is a brief excerpt from the article:
“If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.
What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.”
Click here for the full article.
Below are two related Ridgewood Real Estate articles:
Ridgewood Real Estate Report – Average Sale Price Up 5.4% in October
Good News for Ridgewood Home Buyers and Sellers: Home Buyer Tax Credit to be Extended…and Expanded
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The title really made me think for a while. lol. but seriously, interest rates can really pull you down so for all the homebuyers out there, we should really study the interest rates first.
no JR. interest rates and home values are inversely correlated. you may want to think about that the next time you are looking at a nice 3% ARM that may allow you to finally afford the home of your dreams.
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http://www.benzinga.com/68270/bloomberg-luxury-homeowners-defaulting-at-twice-the-rate-of-the-market