Buy Now? Or Wait for Rates to Come Down Some? Will It Cost You?

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Part 2 (See earlier blog post “Misconception” for Part 1): As a real estate professional with over 45+ years experience, that means that I lived (and worked) through the crash in 2008, and previous bad markets. There are a LOT of people “waiting for prices to come down” or a crash similar to the 2008 one to happen again.

Earlier, (In Part 1 post ) I discussed the supply issue and why that wont happen. Here is another reason it wont happen based on facts. Current homeowners are sitting on record amounts of equity. According to the graph below, 39% of homeowners own their homes free and clear….no mortgage, 100% equity. Additionally, 29% of homeowners have MORE than 50% equity in their homes. That means over 68%, 2/3rds, of homeowners have more than 50% equity in their homes. People that have this much equity in their homes will NOT allow them to be foreclosed on. Even if they had to sell at a discount, they are not letting the bank take the property back.

Moral of the story, buy the house you can afford now, and when rates go down, refinance it to a better payment. If you wait, it will be too late! Start your search at helpful website: www.GarySimmens.com Have a super July!