Many people are saying that this is a great time to buy a home. It’s hard for me to disagree with that. As a matter of fact, between the record-low interest rates and low housing prices, I agree wholeheartedly. For instance, this beautiful Wailua Rise Estate home (MLS# 236180) on Kauai’s east side sold for $1,039,000 in Nov. 2005 and is currently listed for $674,900.
Not that anyone could predict the future of the housing market. No one, especially me, could say that prices will not fall any further. No one could ever see the bottom, just like no one could really ever see the top either. When everybody, including the experts, are comfortable saying we are for sure at the bottom of the market, and it’s only up, up, up from here on out, then we know that we have missed the bottom altogether and prices are on the way back up.
This is not the worst thing because housing prices will not climb so fast that a prospective buyer won’t find a good deal. As a buyer though, you will not be alone in the driver seat anymore. There will be others out there just like you, looking for the perfect house at the perfect price. A well-priced home may get multiple offers. Then, the dreaded bidding war follows suit.
Think about this. If you wait to see if home prices come down further, you may miss out on the record-low interest rates. Calculate what a one or two percent higher rate could do to your projected monthly mortgage payment. If you are thinking of buying a home, talk with a lending expert. This well help you set a target purchase price.
Historically, homes have made a great long-term investment. A home is a place to live, a place that provides shelter, and a stable environment to raise our families, a place where memories are made that last forever. In time, appreciation will occur and the loan will get paid down, and all on its own, it will turn into a great investment.
Contact me for information on Kauai real estate, or to just talk story.