The National Association of Realtors reported that for the first time in 6 months that the existing home sales for the month of February increased by 2.9%. While this is seen as a positive sign for the housing market, we are not yet out of the woods for a lagging market.
Price pressures will continue throughout the summer as inventory of homes peak. Analysis expect the bottom to hit over the 2nd and 3 quarter of 2008 and then a very slow recovery for the housing market. Central Florida is no exception to this report as the South saw an increase of 2.1 % .
While most buyers in the Orlando area are watching home prices as the determining factor on when to purchase, they should also be watching interest rates. A $10,000 drop in a home price might be impressive but if rates jump .5% or .75% that $10,000 saved will pail in comparison to the addition cost of a 30 year loan.
So While timing the market might seem important, waiting for a lower price may actually cost you more in the long run. It is alway best to check with your lender first to see where rates are heading. You can always watch on-line at www.bankrate.com for daily rates.
Why wait for the price drop when you can make an offer on a property to reflect that price reduction. Better yet get the seller to pay for an interest rate reduction. By dropping your interest rate 1% you could save tens of thousands of dollars throughout the life of a 30 year loan.