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| View towards San Pedro |
One of my most popular posts was on the cost of waiting to buy, posted several years ago.
And it's still an important reason to make a move --
Renting vs. Buying. Waiting for better interest rates can result in long term higher costs. Renting has zero equity growth and offers no tax benefits of homeownership.
It's important to watch the shifts in the local market, and stay ahead of the changes, not behind them where you're playing catch-up.
There's been talk of when the interest rates will drop -- but look at the local market--in spite of interest rates dropping and then rising again, the local single family market and condo market has still risen when comparing October 2023 to October 2024. The demand is still strong, and that's helping the overall upward surge in prices. Here's a scenario from my post back in 2009, you can substitute in current asking prices and slightly higher interest rate, but the point is still the same:
Let's make an assumption that the prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $250,000 to go down 5% to $237,500, and the interest rate goes up one percent from 5.25% to 6.25%, which is entirely possible, the buyer's monthly payments will increase almost $79 per month.
If you're a first time buyer (meaning you haven't owned property in the last years), look into the buyer programs offered through various banks.
If you're holding back because you think interest rates will drop again, or again, just think about how you could be gaining equity, and saving on tax deductions. Not every home that's come on the market is selling, and reasons vary, but think again about your goals towards homeownership.
Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996
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