Wait or Buy Now?
by : Joshua Jarvis
If you’ve been looking for a home to buy then you know that there’s not nearly as much to choose from as there was a year ago. In fact, in most markets it’s become “a seller’s market” meaning that there are less than 6 months worth of homes to buy on the market. The Atlanta real estate market is up over 30% in many cases.
The thought could be that you think that you will wait until spring 2014 to purchase thinking that homes won’t go up as much as everyone says and more homes will be hitting the market. However, one factor that you should consider is the interest rate.
If the interest rate goes up 1 point, say from 4% to 5% an average $250,000 buyer will now be forced to look at only $225,000. To put it in perspective, the average sold home in Atlanta went from $150,000 to $180,000 in just a few months. Home buyers are able to use the low interest rates to stretch beyond that to find homes, driving the housing economy. Should rates go up to 5%, those same buyers will be looking below the average sold price and have even less to choose from.
The cost of waiting will actually be less choices with lesser homes for more money.