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I had plans to buy a home in about a year, since by then, I would be ready with 20% down. But with all this talk about the housing hitting bottom finally, I wonder whether I should buy now with 10 or 15% or should I wait. Will the price rise by next year?. Need your advise...
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IMO, when in doubt, wait--especially when you'd be able to put 20% down if you did, and the wait is a short one. I agree with GiantRutgersFan that prices are unlikely to skyrocket in the next year (and may even stay the same or go down further, depending on which source you choose to listen to), and it doesn't seem that rates will skyrocket overnight. Even if rates start to rise, the savings you should have from being able to put down 20% should offset the difference.
I cant see prices rising all that dramatically in just one year. I would expect things to be relatively flat for a while yet.
I would hold off and try to do it the conventional way rather then rush into things.
What would be flat? Home prices? If so, I agree. Especially given the current state of the economy.
Interest rates...no one has a clue and it's iffy.
The difference between a $400K mortgage at 3.5%/30 year term vs. a $400K mortgage at 8%/ 30 year term is $1800 (ish) per month vs. closer to $3K per month. That's kind of a big deal if you're working to save for the initial downpayment.
I am starting to see prices rise already in many of the more subrban areas. Not saying the usual agent "now is a great time to buy" garbage, just stating a fact. I run median prices on each town with every appraisal I do. About 1/2 the time, I am noticing a small (1-6%) increase. The remaining half are split evenly between no change and slight decrease.
i believe if you put down 20% you avoid pmi ,which in many cases is a substancial amount of coin on the other hand if your paying rent your still losing that coin
The federal reserve is keeping interest rates the same into 2014 or 2015 now. With interest rates not changing no one is going to be in a rush to buy a house. There are still tons of foreclosures on the market. It is a buyers market and will stay that way for at least a few more years IMO. I am looking to buy in the next 1-2 years and am close to 20% myself. Just be patient. You're buying a house, not a futures contract. The prices won't rise that much if they even do at all.
The federal reserve is keeping interest rates the same into 2014 or 2015 now. With interest rates not changing no one is going to be in a rush to buy a house. There are still tons of foreclosures on the market. It is a buyers market and will stay that way for at least a few more years IMO. I am looking to buy in the next 1-2 years and am close to 20% myself. Just be patient. You're buying a house, not a futures contract. The prices won't rise that much if they even do at all.
It is no longer a buyers market in the better towns. Inventories are 4-10 months in most towns where the median home price is $300,000 or more. It is now a neutral market in suburban northern NJ, with neither buyers or sellers in control. This represents a change from the buyers market of the past few years. The situation is neutralizing and in the train station towns and more desirable suburban towns, the situation is already neutralized. Name the town and I will provide the stats.
It is best to stay with data when making these arguments and stay away from emotions and wishful thinking.
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