Timing Is Everything When Buying a Home For Sale in St Louis

Posted by admin on Mar 11, 2010

Are you thinking of buying a house? Homes for Sale in St Louis are plentiful and well priced. The question is, should you buy now or wait to see if values go lower?
For many prospective home buyers and sellers, everything seems to evolve around the value of homes. If you are considering buying a home, you wonder if you should wait in anticipation of values going down.  With the government’s homeowners tax incentives schedule to expire and the prospect of many more foreclosed homes coming on the market, there are valid reasons to think values will come down even further. Another issue for many prospective home buyers occurs when a buyer has a house to sell and they worry about not receiving enough for their home. The old saying being between a rock and hard place comes to mind.
Though property values are important, the ability to purchase homes for sale in Saint Louis will more likely be impacted by the prospect of rising interest rates than property values. At the end of March, the federal government has indicated they will no longer purchase mortgage backed securities, which has been a key factor in maintain the today’s current low rates. Prior to the feds acquisition of mortgage backed securities, interest rates were in the 6% range and many experts, including those in our own government believe rates could rise to as high as 8% on a 30 year fixed mortgage. Even if property values are unchanged, an increase in interest rate will have substantial impact on one’s ability to qualify and greatly impact the overall cost of home ownership.  If you are considering buying home for sale in St Louis, the question you need to answer is it better to take advantage of  today’s low rates,  knowing they are likely to go up or is it better to wait  for property values to come down. My suggestion is to consult with a qualified Mortgage Wealth Manager who can run an analysis of both options and determine which is best for you. If you in the market and seriously looking at homes for sale in St Louis.,  it is never a good idea to make a decision based on a gut feel and I recommend each prospective home buyer compare the advantages of buying  in today’s market, versus the advantages of waiting.