While today’s market plays to the advantage of buyers who should be swooping in to make the most of reduced housing costs and favorable interest rates, most are sitting by, waiting. I consider it my job to mobilize potential buyers to invest in home ownership now. Fact: when the market turns, today’s bargains will be yesterday’s missed opportunities.

While it is conceivable that home prices may drop further, it is likely that these decreased prices will be accompanied by increased financing costs due to rate cuts by the Fed. This means that any money saved on paying less for a house in a few months time will be offset by having to pay off your mortgage at a higher interest rate making “playing the waiting game” a waste of time (and very little fun). demonstrates how even as home prices may drop, monthly mortgage payments basically stay the same; due to increased interest rates: Scenario 1: Prices decrease by 5% and interest rates increase by 0.5%

Scenario 2: Prices decrease by 10% and interest rates increase by 1.0%

Table: Kadlec, Dan. "Ignore the Headlines!" Time 25 February 2008

Why should you spend months in a situation that you want out of when you can begin your new life in your new home today, with less interest?

For information about the Santa Monica Real Estate market please contact me directly.

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