Are you one of today’s savvy buyers who are capitalizing on the current market dynamics, taking advantage of the low housing prices and the near historic low interest rates? A buyer who realizes that they may not be buying at the absolute bottom of the market but who is astute enough to understand they will never be able to time the absolute bottom of the market? A buyer who understands that over the short term they will be enjoying their new home and over the long term perhaps have greater equity appreciation.
Or are you a wannabe quasi astute buyer who thinks they will know when the market bottoms out and be ready, willing and able to pull the trigger and purchase that home? The odds are you’ll miss the bottom of the market and be sitting on the sidelines after the turnaround commiserating with your buddies about ‘the one that got away’.
What most people don’t understand is that when home prices turn the corner, the market won’t change by small amounts, dribbling its way to recovery. It will bounce back and increase by large amounts. The odds of being able to continue to save enough money to meet the new down payment requirements before the price increases again are pretty slim. Think of it this way – for every $1,000 in price increase, you’ll need to save an additional $200 to stay within the 20% down payment guidelines.
Bottom line…are you a wannabe or an astute & savvy buyer?