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If You Don’t Buy a House Now, You’re Stupid or Broke

“Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again,” writes Marc Roth in his recent Business Week article.

By the way, the title of this post is ripped straight from Mark – it’s just too provocatively good to not repeat!

“Well, you may not be stupid or broke. Maybe you already have a house and you don’t want to move. Or maybe you’re a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don’t act soon, you will regret it.”

Here’s why: historically low interest rates.

Mortgage rates chart

“As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That, as the graph above—which you can find on—shows, is the lowest the rate has been in nearly 40 years.”

Mark’s article is a really good read for anyone interested in where we are at this point in business history.

“If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.”

Wow…that’s a lot of money if hesitation or lack of preparedness gets in the way.

Consider this next chart as a launching pad for the first half of 2010.

Sales by category and price range

Sales were lower in 3Q 2009 in most price ranges and the decline in sales of New homes was somewhat higher than in Resale properties.

The 2010 buyer will continue to have premium leverage over the seller, because the seller of any property begins their fight to win the sales battle on a battlefield that can suffocate them if they are priced wrong.

Inventory is at an all time high!

This recent article states that “the foreclosure picture worsened in metro Atlanta in December, rising nearly 10 percent over November and 77 percent compared with December of last year, according to new data from Equity Depot.

What’s more, the previous annual record, set last year, was shattered as 117,107 foreclosure notices were published this year — an increase of 47 percent, Equity Depot said.”

If you don’t buy a house in Intown Atlanta or Decatur now, then you just might be stupid or broke. In my case, I love where I live in Kirkwood – we are staying put for a while!

However, in the future, when we are looking back on the first half of 2010, I expect that we set some sales records…quite a few more buyers will “get it” over the next 180 days.


  1. This blog has so much excellent information in it that i could spend all week reading it.

  2. Lee says:

    I look forward to finding out more about Silverfish Control – thanks for the compliment! I’m never to busy to help folks with Intown Atlanta and Decatur real estate needs!

  3. I really like your site and i really appreciate the excellent quality content you are posting here for free for your online readers. Can you tell us which blog platform you are using?

  4. Lee says:

    This is a wordpress blog, hacked together by my friends Gary Bannister and Rev. Bubba. Thanks for the compliments from you Mr. Trademark. I rethinking and thinking too much about blogging, but not blogging at all! Tomorrow, Veterans Day, will be a new start.

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