Biggest Reason to Buy; Not Low Home Values

Buyers tend to think that the number one reason for buying a home right now, is to take advantage of the lower home values.

Potential buyers fear that home-values may continue to drop and hesitate to purchase a home. They continue to wait for home values to fall even further but this is a decision they may regret. Home values in several places are not as low as they once were, indicating that they could continue to rise despite a slow pace.

The biggest reason to enter the Florida real estate market is historic low interest rate on mortgages. While there is a slim possibility that prices will get even lower, it will not out way the benefit of a low interest rate.

For example, a home costing $500,000 purchased with an interest rate of 4.54% (current national average) will have cost $916,316.62 after 30 years. That same house if the price were to drop to $450,000 would have cost $1,006,963.71 with a mortgage rate of 6.34%. The better bargain is achieved with the lower mortgage rate versus the lower housing price.

Buyers should think twice before passing up this opportunity.