Posts Tagged ‘interest rates’

The Buffalo Grove Spring Market is Starting-Football is Over

Usually, the Spring Market real estate in Buffalo Grove real estate doesn’t start until the Bears are out of the playoffs. Really, as long as the Bears are playing, no one is thinking about real estate. Well this year it took a little longer to start the spring market. Now,that’s a good thing and since the Super Bowl is finished, can you believe it…the Packers, who would have thunk it, we can get started with real estate again.

The question everyone is asking themselves is should I wait? Aren’t prices going to go down further? The answer is, no and yes. I believe that for 2011, prices in the Buffalo Grove area will drop between 3-5%. If January is any sign of what’s to come, we saw single family home sales drop from January 2010 to January 2011. But what we also saw was that prices stayed the same. Hey, it’s a start.

But here’s the bigger question, if I wait what will my real costs be? You know, the price of the house and the interest rate I’ll be paying. Interest rates are on the rise, the rate in November was 4.17%, the rate today is over 5%. Even is prices fall 5%,but rates go up 1%,your costs over time will be greater.

So if you’re thinking of buying a house, go ahead and factor in what you believe to be the price drop, knowing, that if rates rise, and they will, it will cost you more. The bottom line is your cost.

If you have any questions, please don’t hesitate to contact me. Happy Buying!