Has the Market Changed Enough For Me To Buy A Home?

This is a great time to buy a home! There is a great selection of homes to choose from, sellers are typically willing to negotiate and current market interest rates are close to historic lows. Sellers may be selling because of a divorce, job relocation, or they simply cannot afford their mortgage. Finding these highly motivated sellers gives buyers negotiating leverage they don’t normally have. In a buyer’s market, sellers & builders are willing to offer incentives to entice buyers. Based on media headlines (written to sell newspapers), many buyers are sitting on the sidelines, thinking that prices will go a lot lower. While this may occur in regions where investor speculation ran wild (like Las Vegas,and Miami), statistics show that home prices in Nassau County Long Island NY and Suffolk County Long Island NY have actually been stable for the past 6 months. Especially in a slow economy, the best long term investment may be home ownership.

You know it is almost impossible to time the bottom of any market. Yes home prices may decline a little, but any increase in interest rates may eliminate and increase the true price of the home. Interest rates are expected to rise, and I have seen rates jump as much as 1% in a month’s time. When the market knows rates will be going up, they move up allot and quickly. An increase of .75% in rate on a $350,000 mortgage is equivalent to paying an additional $22,000 for that home.

Contact Mortgage Guru Peter Marino @ 516-982-9653 mailto: petermarino@greenstreetfinancial.com    www.greenstreetfinancial.com