Buy It now!!!

September-November is usually a time when realtors in Sarasota are gearing up for the season and recharging their batteries.  But this year is different.  I was just talking to a realtor next to me and he had made 7 offers the past week on behalf of a client and he only got one.  He got into highest and best offer scenerios and lost out on all of them.

That got me to thinking....Is It the Right Time To Buy?

I have said it before, but I am confident in saying it again, it is time to buy!!

Why?

The economy had hit its stride in the early 2000's, and Sarasota was red hot.  Most people who wanted to buy at that time felt like they had missed their chance as properties had become too expense to buy.  The window closed quickly and those properties were unattainable to the average person who visited Sarasota.  They left in hopes of finding properties that were within their reach.

8 years later and prices have dropped by 50% in Sarasota.  Interest rates that hovered around 6.5% 6 years ago are now at historic lows sitting around 3.5%. This may be the perfect time to purchase that second home.

In 2006 lots of people may have seen that perfect home when they were in Sarasota, but at $400,000 it was slightly out of reach.  Today, that same home might sell for $250,000.  When you also take into account that interest rates are nearly half of what they were 6 years ago, people have to give second thought to whether this is the right time to buy.

Let's look at the numbers and see what impact falling prices and rates have on a purchase today:

DATE                          PRICE               INTEREST RATE                          P&I PAYMENT

2006                            $400,000                   6.50                                           $2,528..27

2012                            $250,000                   3.50                                           $1,122.61

If you are in a position to make a purchase, now may be the time!!!