Factors to Consider When Determining if now is the Time to Buy Real Estate

I think prices may still decrease by 10 – 15% as REO and short sale inventory increases and the number of first time home buyer transactions decrease. The higher end could see even higher adjustments as the result of increasing distressed sales. 5 & 7 year ARMs are resetting in bulk this year and next. There is not a viable refinance option. Conversely I expect interest rates to increase. The Federal Reserve has already announced the cost of borrowing it going up. The payment difference on a $300,000 30 year mortgage at 6% versus 5% is almost $190 a month. As rates increase, buyers’ purchasing power decreases and will result in a downward pressure on prices. Higher interest rates may offset lower prices. Since we don’t know how high rates may go I continue to believe that today’s lower and mid market offers unprecedented opportunity. Look for deals at the higher end. Your Home Team specializes in Stockton homes for sale, Lodi homes for sale, Lathrop homes for sale, Manteca homes for sale and Tracy homes for sale. Our marketing and servicing is unsurpassed. Pease call us at 209-471-6516 will any questions you may have and visit our web site at www.homes-in-stockton.com to view ALL the Central Valley homes for sale.