For every 1% increase in the interest rate a home buyer loses 10% of their purchasing power
Portland, OR (PRWEB) July 31, 2012
Thinking of buying, selling or investing in real estate? If the next six months are anything like the home value cycles of 2010 and 2011 prices will fall 3-5% from now until December, only to recover in the first six months of 2013. The moral of the story, don't be worried about prices fluctuate. The thing you do need to be worried about is the interest rate.
"What's critical for buyers to remember is that for every 1% increase in the interest rate a buyer loses 10% of their purchasing power. The dilemma for sellers is that as interest rates rise the pool of buyers who qualify for their home diminishes unless the seller drops their asking price by 10%," says John Bacon Principal Broker of Keller Williams, Sold in Oregon Real Estate Team. The win-win for buyers and sellers is to act now and hire the right real estate consultant to help them move forward with their plans to buy and sell.
Once rates start to creep up and its just a matter of time people will reminisce about the incredible rates of 2012 and it will be to late. That dream home you wanted might end up costing more than you imagined. For more information about meeting with a real estate consultant call John Bacon at Keller Williams, Sold in Oregon (503) 625-2588