Mike O’Neil, Berkshire Hathaway Home Service Fox & Roach Realtors
Since interest rates have dropped slightly, in the past several quarters, the question I get so often is, “Do I buy a house now or wait until rates drop further?”
Industry experts seem to agree that in the next 3 or 4 quarters, rates on 30-year mortgages may well hit the low to mid 5% mark.
First of all, it’s an unknown. A lot of different factors will affect rates, not just the Fed as many people think.
The only thing to be aware of, or the most important thing to be aware of, is whether demand for homes in our area is going to remain strong, and whether inventories grow.
For prices to be affected downward, supply would have to increase dramatically. Not going to happen! In terms of demand, there is no indication of any slowdown! So, after 40 years of doing this, don’t wait for rates to drop. Appreciation will probably outpace any benefit in rates.
The big thing is to find a home you can afford and watch prices rise over time.
Finally, many people comment about overpaying. If you have a realtor who you trust and is aware of market pricing, you won’t overpay! Real estate over time has been a great investment, and more importantly it should continue!
Finally, without mentioning names, many neighborhoods at the lower entry level pricing are appreciating at the same or even higher than areas than surrounding desirable areas. Discuss that with a trusted confidant or experienced realtor! Good luck?
My contact info is 215-962-8511 and mike.oneil@foxroach.com.