I knew Philadelphia was lucky in avoiding much of the real estate melt down affecting other parts of the country. Our report shows how market remaining flat from 2006 to 2007 while other parts of the country showed huge declines. TIME Magazine just published an article that made us realize we’re doubly lucky: While we are avoiding the bubble we still get to benefit from the lower interest rates to combat it!
In “Ignore the Headlines” TIME Magazine shows how buyers can save money even if the market goes down due to historically low interest rates. What they say is:
Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be.
Buying today will save you money on your monthly expense and give you some built in protection against market swings in the future. Given that Philadelphia is less likely to show declines in 2008 than the rest of the country, now is a great time to buy in Center City. So…
Contact a Philly Living agent to find your home today!
Post on Philly Living's Philadelphia Real Estate blog.