Buy Now? Or Wait for Rates to Come Down Some? Will It Cost You?

Part 2 (See earlier blog post “Misconception” for Part 1): As a real estate professional with over 45+ years experience, that means that I lived (and worked) through the crash in 2008, and previous bad markets. There are a LOT of people “waiting for prices to come down” or a crash similar to the 2008 one to happen again.
Earlier, (In Part 1 post ) I discussed the supply issue and why that won`t happen. Here is another reason it won`t happen based on facts. Current homeowners are sitting on record amounts of equity. According to the graph below, 39% of homeowners own their homes free and clear….no mortgage, 100% equity. Additionally, 29% of homeowners have MORE than 50% equity in their homes. That means over 68%, 2/3rds, of homeowners have more than 50% equity in their homes. People that have this much equity in their homes will NOT allow them to be foreclosed on. Even if they had to sell at a discount, they are not letting the bank take the property back.
Moral of the story, buy the house you can afford now, and when rates go down, refinance it to a better payment. If you wait, it will be too late! Start your search at helpful website: Have a super July!