The Times They Are a-Changin
Today’s market favors the buyer. June 2022
If you have been holding back buying a home now, is the time. You might ask, how can I say that with high interest rates and high prices.
My company is Owned by Warren Buffett of Berkshire Hathaway fame. He is recognized as one of the best investors ever. One of his winning ways has been “Be Fearful When Others are Greedy and Greedy When Others are Fearful”. This is the time for you to jump in and take advantage of the turn of events.
Your competition is gone. They are fearful. They may be back anytime so stop putting it off.
Regarding the higher interest rates: If rates go down, you just Refinance. And if Rates go up you say “Thank God I am so smart for buying when I did”.
Most banks have a 7-year fixed rate loan below 4%. Some are offering a 40-Year loan making your payments low. Others are offering Interest Only payments also to keep your payments low. Many options are available to you. Many are offering good loans with 5 or 10% down payments. Paying extra money upfront to get a lower rate has become very popular recently. The difference in the banks is not necessarily the interest rate it the loan options they offer. Each one has their focus. Reach out to me and I will guide you to the right lender. Doug Duncan, Senior Vice President, and Chief Economist at Fannie Mae, says: “I caution against making the inference that interest rates have a direct impact on house prices. That is not true; if you’re a buyer waiting, most likely you’ll pay more later”.
Regarding the higher prices: Statistics tell us fewer homes are selling in the Bay Area but prices are still increasing. Due to the Hi-Tech and Bio- Tech our demand in the Bay Area is so much greater than the supply. Selma Hepp of Core Logic a Real Estate Analytical company said of the Bay Area. “Demand is so much larger than the supply in the Bay Area home prices will continue to grow.”
Yes, Prices may come down a bit in the short run. But if you are not selling it does not affect you. You should be buying this home to live in for a long time at least 3-5 years. History has shown in the long run Real Estate always comes back strong. In a year or two this will be gone and prices up again.
So, if prices decrease, you can mentally justify it as a wash for the rent that you would have had to pay and get nothing back.
I hope you follow my logic. If you would like to start the home buying process or just have a Real Estate question, please reach out to me. email. Once we have your loan approval and you tell me what you are looking for, I might be able to help you find a home before it hits the market.
I will conclude with:
“It Is Better To Own Real Estate and Wait, than Wait To Own Real Estate”.