If Your Goal Is to Buy Low, Buy Now!

As we have been pointing out for months – the market is shifting and now is the time to talk to me about running you the Market Trends in your local area so that you can make the best informed decision.  Another great post by our friends at Keeping Current Matters…

There is a very famous saying which asserts “Sell High, Buy Low”. It is obviously great advice no matter what the investment. Below is a graph showing the cycle of investments. It shows the points of maximum risk and maximum opportunity when purchasing. We want to sell high (point of maximum risk) and buy low (point of maximum opportunity).

The challenge is how to determine when we have hit bottom if you are a purchaser. The only time you can guarantee a bottom is after you pass it. 

However, there is more and more evidence that the COST of a home has in fact hit bottom. Notice we have used the word COST. Unless you are an all cash buyer, you must take into consideration the expense of financing a property to determine the true cost of purchasing the home. Interest rates have increased over the last quarter; and the rise in rates has counteracted any fall in prices.

Let’s look at an example:  http://ftemerson.wordpress.com/2011/03/01/612/

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