Comments on: Timing the bottom – Comparing price declines and interest rates http://blog.findwell.com/buying-a-home/timing-the-bottom-comparing-price-declines-and-interest-rates/ Seattle Real Estate Info, Advice, Statistics & Discussion Thu, 19 Jan 2012 01:51:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ron http://blog.findwell.com/buying-a-home/timing-the-bottom-comparing-price-declines-and-interest-rates/#comment-65 ron Sat, 02 May 2009 08:03:00 +0000 http://blog.findwell.com/uncategorized/timing-the-bottom-comparing-price-declines-and-interest-rates/#comment-65 <p>It's not as though interest rate and price are unrelated. If prices are due to fall by 10% under current interest rates and interest rates rise, then prices will fall by more than 10% to account for the fact that the higher interest rate has negatively affected affordability.</p> <p>Also, have you ever heard of someone refinancing to a lower principal (current government shenanigans notwithstanding)? You mention that one should expect to stay in the home for greater than 5 years. The buyer would have to stay in the home for the entire term of the mortgage to break even vis-a-vis buying at the lower price/ higher interest rate combo. This is assuming that interest rate and price are unrelated which, as I said above, is not true.</p> <p>Could you tell me when it is not a "good time to buy"? Getting analysis like this from a real estate "professional" is akin to asking a barber whether you need a haircut.</p> It’s not as though interest rate and price are unrelated. If prices are due to fall by 10% under current interest rates and interest rates rise, then prices will fall by more than 10% to account for the fact that the higher interest rate has negatively affected affordability.

Also, have you ever heard of someone refinancing to a lower principal (current government shenanigans notwithstanding)? You mention that one should expect to stay in the home for greater than 5 years. The buyer would have to stay in the home for the entire term of the mortgage to break even vis-a-vis buying at the lower price/ higher interest rate combo. This is assuming that interest rate and price are unrelated which, as I said above, is not true.

Could you tell me when it is not a "good time to buy"? Getting analysis like this from a real estate "professional" is akin to asking a barber whether you need a haircut.

]]> By: Jim Johnson,CRS http://blog.findwell.com/buying-a-home/timing-the-bottom-comparing-price-declines-and-interest-rates/#comment-64 Jim Johnson,CRS Tue, 28 Apr 2009 17:37:42 +0000 http://blog.findwell.com/uncategorized/timing-the-bottom-comparing-price-declines-and-interest-rates/#comment-64 <p>Nice post! I think now is the time to buy real estate in Bend Oregon. You can't time the bottom and we are close. It looks like a good time to buy in your area!</p> Nice post! I think now is the time to buy real estate in Bend Oregon. You can’t time the bottom and we are close. It looks like a good time to buy in your area!

]]> By: WaileaKid http://blog.findwell.com/buying-a-home/timing-the-bottom-comparing-price-declines-and-interest-rates/#comment-63 WaileaKid Sun, 19 Apr 2009 16:32:53 +0000 http://blog.findwell.com/uncategorized/timing-the-bottom-comparing-price-declines-and-interest-rates/#comment-63 <p>Nice analysis. Obviously there are more chances of prices being down by 6.5% than the rates going up to 5.5% in near future. </p> <p>Besides, if rates go up, even fewer people will be able to afford and the prices will go down further.</p> <p>Conclusion: It makes sense to wait it out in this market.</p> Nice analysis. Obviously there are more chances of prices being down by 6.5% than the rates going up to 5.5% in near future.

Besides, if rates go up, even fewer people will be able to afford and the prices will go down further.

Conclusion: It makes sense to wait it out in this market.

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