Who wouldn’t say ok? Only one problem, unless your crystal ball is better than mine, when exactly is the bottom. Is it this month? Next month? Last month? Last year?
Let’s take a look at the current market in Parker Colorado. As a buyer, you’ve got plenty of choices with homes on the market for first time buyers all the way to custom luxury homes. Now factor in that prices have adjusted downward and are now at 2002-2004 levels in most areas. Look at interest rates: 5% for a 30 year fixed mortgage. Unbelievable.
Not to bore you with details, but when I first started as a Realtor in 1989, interest rates were over 10%. That’s right, double the current interest rates. Now, you could wait and see if prices get any better in Parker, Colorado (doubtful), but what happens if interest rates go up?
Have you heard of the 1%-10% rule? It goes like this: for every 1% change in interest rate it affects your buying power 10%. A 4.5% $200,000 30 year mortgage payment would be approx $1013/mo. Now at 5.5% that same $1013 payment only buys you $178,476 mortgage. And at 6.5% it drops to $160,326 mortgage.
Most buyers tend to follow the herd. This is a time when you want to stop following and get a great deal while you can. Great choices, low rates and fantastic values. My crystal ball says now is the time for buying a home in Parker, Colorado.
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