Waiting in real estate
I remember when I started selling houses in 1995. The talk of the town then was the low prices that were coming back to Boulder. There had just been a serious run up in values. It seemed like the thought around town was, “let’s wait for low prices to to return.” Apparently, values in the eighties had been sluggish and nobody could understand how almost overnight values had exploded 40% in value. A lot of buyers were intent upon waiting for the market to correct.
Twenty years later
Today, I hear a lot of folks talking about waiting for low interest rates. After all, interest rates were just recently as low as three percent. Then it seems, interest rates just exploded up in value to well over 4.5% in the very recent past few weeks. Although the Fed is now backtracking on when the mortgage buy back program will actually end, interest rates are up. There is a hope that rates will fall back into the threes.
The truth about Boulder real estate
The truth is, interest rates are not going to go back into the three percent range for a very long time. Just as values in Boulder never returned to the 1980’s prices. Rates are going to increase, unfortunately, due to a number of factors tied to our recovering economy. The silver lining is that home values are also on the positive upswing once more.
For Low rates buy now
For low rates, for low prices for a good deal on your next home, now is the time to buy. Don’t wait for something that is not going to come along anytime soon. The low interest rates of last year are gone. The ship has sailed. But you can still take advantage of generally low rates and growing home prices by buying your new Boulder home today. Give me a call to discuss the Boulder real estate market.
Absolutely right – no reason to wait for rates. Even if they market drops the banks are going to be slow and cautious with lowering rates from here on out. Grab what you can now if rates drop again to the 3’s you will have opportunities later if and when that does happen. ARM’s are yet to be an option (no buyers for the ARM MBS – buyer was the REIT’s but they are in sell mode). Don’t miss your chance!