Sell first or buy first? Is it a good time or a bad time to sell and buy in the Northwest?
I was talking to "M" the other day and she was worrying about what her house would sell for with the current market conditions..
Question: It is better to sell low and buy low than it is to sell high and buy high? Her comments were: "But I want to sell high and buy low"!
Ah, if it were only a perfect world. Well, it may not be a perfect world but it could be a perfect time to reach out and grab that new property that you have been longing for.
Inventory in Months from June 2010 RMLS
2008 2009 2010
January 12.8 19.2 12.6
February 10.4 16.6 12.9
March 9.1 12 7.8
April 10.3 11 7.3
May 9.2 10.2 7
June 9.5 8.2 7.3
July 10 7.3
August 9.9 7.8
September 10.4 7.6
October 11.1 6.5
November 15 7.1
December 14.1 7.7 *Inventory in Months is calculated by dividing the Active Listings at the end of the month in question by the number of closed sales for that month. 6 months inventory is deemed to be perfect.
If you are in the place where you may be thinking of moving to a large house, perhaps you're traveling and want the safety and convenience of a condo, perhaps you've always wanted a little spot with some acreage, or a home with an amazing view, now might be the perfect time to explore the possibilities.
This may be the best move up market we have seen in decades!
Low prices in Portland, Vancouver, Beaverton and the Northest (relatively speaking), as we are blessed with a market and an area or the country where people want to move to.
Low interest rates that haven't been this low in 40 years Most economists predicted that interest rates would pop up after the government subsidy expired. And they did rise - for a few days. Now for the last few weeks interest rates are an believeable! 4.25%!
Scenario
3 years ago house was worth $400,000 and has lost 15% = $340,000 ($60,000)
3 years ago the house you wanted was $600,00 and has lost 15% = $510,000 ($90,000)
3 years ago house payments on the $400,000 house were $2334 at 5.75% interest
Today, house payments on the new $600,000 house, now worth $510,000 at 4.25% are $2816
This is a straight calculation and includes only principal payments and interest. It does not figure in net proceeds from selling the existing house and applying the proceeds to a down payment and therefore lowering the mortgage payment further.
Buying a new house is more than about money and mortgage payments. It is about falling in love again. Care to fall in love with that new house waiting for you to find it?