David Visconti

I spend a great deal of time reading and studying the current home buying trend. Unquestionably, most people do not feel motivated to purchase a home at this time. I suspect that the biggest reason is high interest rates, which ultimately means cost.

Often, I read about low inventory, which when you consider existing homes, is certainly true. New home sales are down too and yet inventory is plentiful. Many new home sellers are offering incentives like interest rate buy downs (giving thousands of dollars to the lender in order to reduce the borrowers mortgage rate). This appears to have moderate success, but still, not hugely so.

Most experts, that I have read, believe that property values are going to explode (increase) once interest rates come down significantly. However, if that is true, then buying now, regardless of mortgage rates is bound to payoff big time.

So, what do you think? Does it make sense to endure some short-term pain, high interest rates, in order to achieve future equity gains? Is it better, because of uncertainty to wait? I would love to hear your thoughts. Send me a note.

David Visconti