TN Real Estate Blog

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Real Estate Buyers Timing the Market

We're experiencing the greatest buyers market that has been seen in many years.  It would seem that first time buyers and move up buyers would be tripping over themselves to take advantage of the current market, right?  Not so much.  What are you waiting for, an engraved invitation?  Well here it is.

You are Hereby Cordially Invited to Partake in the American Dream of Home Ownership

So what's the problem? 

Financing difficult to find?  Financing options are more limiting now, but in general, buyers who should financially be able to buy a home can get financing. 

You want to buy at the lowest part of the market?  That's great but how do you know when the low will occur?  When the market shifted in Middle TN in approximately July 2007, the change seemed to happen over just two or three weeks.  By the time I noticed a change, the market shift had already happened.  It's likely that the market will change back just as quickly.  How are you going to TIME that market?

Now you say, "Prices might continue to go down".  I'll go find my crystal ball and check that for you.  While I'm at it, perhaps I'll look up in the likelihood of rates NOT going up.  It's inevitable that rates will go up.  Any potential advantage buyers have with lower prices will be wiped out by higher interest rates.  Take a look at these numbers which show how a decreased price and an increased interest rate affect the monthly payment. These calculations are based on a down payment of 5%.

TODAY

Home Price

$250,000

Interest Rate

6.0%

Your Payment

$1,425

Scenario 1

Home Price (-5%)

$237,500

Interest Rate (+0.5%)

6.5%

Your Payment:

$1,428

Scenario 2

Home Price (-10%)

$225,000

Interest Rate (+1.0%)

7.0%

Your Payment

$1,424

Be careful not to miss the forest for the trees.  If you have an income, plan to be in the same geographic area for several years and do indeed need a roof over your head, get off the fence and go buy a home!

If you're looking for Nashville TN real estate, call Tiffany White at 615-260-5858 or search available Middle TN homes at www.TiffanyWhite.com.

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Comment balloon 3 commentsTiffany White • October 09 2008 09:40AM

Comments

Tiffany - Great Job. Buyers reading this will surely have to think obout the fact that one or both of the factors that determine the monthly payments are likely to go up in the next few months.  THis is a great time to buy Franklin real estate.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 10 years ago

Interest rates sure can wipe away a lower home price - work with a good lender and be ready to lock, rates are fluctuating daily! 

Posted by Stanton Homes, Design/Build Custom Home Builder in North Carolina (Stanton Homes - New Home Builder) almost 10 years ago

Hey Tiffany,

I was just looking at your blog index and found this post.  Not sure how I missed it before but it is a vivid demonstration of rates vs price.

Nice postlets too!

Mike

Posted by Franklin & Brentwood, TN Homes Mike Nastri - Rodney Kennedy, It matters to us as much as it matters to you. (Keller Williams Realty) over 9 years ago

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