Should buyers looking to get in the Pinehurst real estate market wait to purchase in the event prices may drop further?
If you will be using a mortgage to purchase your next (or first) home, then you should consider the possibility that even of prices go down you may still pay more.
For example, if you were to purchase a home with a mortgage of $200,000 at an interest rate of 4.25% your monthly payments would be approximately $980 a month excluding insurance and property taxes. Let’s say you wait and the price drops $25,000 and now you have a mortgage of $175,000. If the rate jumps to 6% – which isn’t high historically speaking – your mortgage payment would be approximately $1,050 monthly. And what if prices don’t decline in the Pinehurst area? Then that $200,000 mortgage at 6% would be almost $1,200 a month.
There are still plenty of homes in the Pinehurst real estate market from which to choose, and prices have declined in recent years. And even though there may still be some downward pressure in real estate prices, there is a good chance that interest rates could rise and the savings on home prices would be negated by the increase in interest rates.
You can click here to find all homes in the Pinehurst Real Estate Market.