Real Estate For Atlanta Blog

For months, I have been telling people that the opportunity to buy is now and that waiting for the so called bottom is a mistake. Those who listened to me took advantage of the market and closed on their homes this month. They will enjoy a purchase price as low as low can be. In many cases, prices in line with what the same home cost 10 years ago. In addition, they are enjoying a 4.5% 30 year fixed interest rate. For those who have missed the boat, interest rates have already gone up by almost a full percentage point in the last week alone. The going rate now is closer to 5.25% - 5.5%. This .75 difference in rate may sound like a small amount; but take out any loan calculator and you’ll quickly see that it equates to about $200 / month extra payment on a $400,000 house. That means that what cost $2,000 a month last week will now cost the owner $2,200 for the same house. A 1% rise in rates is about equivalent to a 10% rise in price in terms of monthly costs. So, effectively the payment on that $400K house is now equivalent to the payment you’d have if you bought it for $440K last week. Additionally, home sales are up and the value priced properties are now getting multiple offers and bidding wars. It stands to reason that prices will begin to rise soon as well. Though it is probably too late to buy at the most opportune time, I believe things will only get less favorable for buyers from this point forward. The prices and interest rates we have now are still incredibly low and this could very well be the last chance to get in before the train pulls away. Don’t get left out and kick yourself for waiting too long and missing the opportunity to buy a home in this unprecedented buyer’s market.

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