BUYERS! Get on Board!
Thursday, August 20, 2009
‘Houston…the Eagle has landed’. I enjoyed recently the celebration of the Lunar landing. Let’s change the wording to fit our times: “Buyers, we’ve landed, and are now lifting off”.
Home values in San Jose, Morgan Hill, Gilroy, Hollister and San Juan Bautista “have landed” at the bottom of their value slide and are beginning to “lift off” that bottom. We are not going to see these prices again for a very, very long time, if ever again.
Here’s the affect of waiting to buy a home: A home listed today for $350,000 and goes up 5.0% in value will then be worth $367,500. A buyer who waited and then buys this home will need $985 MORE CASH and $268/mth MORE INCOME to qualify for this same home.
If the interest rate is at 6.0% (vs. the 5.0% used above) when the buyer decides to purchase this increased-value-home, their income will need to be $843/mth. HIGHER to qualify!
Some prospective home buyers may be calling out: “Houston, we’ve got a problem“. The erosion of their purchasing power may make them permanent renters.
My crystal ball recommends that those who want to buy a home climb on board NOW while they can. What does yours forcast?
Hi Mike,
This is the kind of information my brother needs to get off the stick. Can he call you for homes in Morgan Hill?
Hello Larry,
I’d love to hear from your brother. Watch for July’s figures for Morgan Hill, Gilroy and Hollister. I’ll be posting those figures in the next few days.
Mike
Even though we already own I home, we still did what you suggested. Wow! You’re right! What a difference in take-home pay. Thank You!
I’m glad you made the change. Now, make sure your friends & family know about this cool tool.
Mike