Buyers who choose to wait until prices come down more are also gambling that interest rates will hold steady or drop further. The impact interest rates can have on the real monthly costs of homeownership is very significant. Do you know that if interest goes up 1%, your monthly payment will go up 10%? What is more likely? Home values dropping 10% more or interest rates going up 1? A home at $500,000 at 4.5% has a payment of $2,026. If interest rates go up by just a 1%, the house would have to drop in price to $446,000 to have the same payment.
With current interest rates and the tax write-off you get from the government, you have an effective interest rate of around 3%. That gives you immense buying power. The odds of that happening again in your lifetime are very slim. Act now, or look back and regret it later.
If you are looking to buy a home, or you are on the fence about buying a home, consider using me as your realtor.