Thursday, April 24, 2014
Listings Still Needed
Spring has brought buyers, but good new listings are still in short supply. Many people think that they should wait until prices go up more, maybe forgetting that selling low and buying low is as rational a strategy as selling high and buying high. Therefore, I fell compelled to point out once again that interest rates are going up, and that the most important factor to consider is the monthly cost of home ownership. The price you buy for matters less than the interest rate on your loan, over the long run. Unless you can afford to buy before you sell, you are better off selling at the current price levels and financing a new home at today's mortgage rates than to wait until you have more cash, but will be paying higher loan rates. It's the kind of problem that is so easy to see when it's someone else's money; it's very hard to be as rational about one's own situation. That's why Realtors are here--to point out the facts. Your job is to act!