Getting Past The Economic Jitters

Are you thinking about buying a house, but can’t convince yourself to actually sign the contract with all the economic uncertainty?  Many buyers are spending days looking at houses and nights worrying whether they should wait.  If this is you don’t despair, you are in good company.

While the National news still shows a slow road to recovery, Texas has increased jobs the last two consecutive months.   Texas’ recession started later and was shallower than in the rest of the country.   It is not far-fetched to envision a sooner recovery in this area.  Recent home sales in Dallas, Collin and Denton counties show an increase year over year for the first time in well over a year.  Collin County homes inventory has dipped below 5 months worth for the first time since 2006.   That is good news for Plano real estate and McKinney homes for sale.

What does all this mean for the buyers out there that are on the fence?   There are a number of factors to consider:

1. Assess your financial situation.  What does your cash flow look like today and why would you expect it to change?  Be realistic.   Do you need to reserve some of what you would have used for a down payment?   Do you need to reassess what you can afford?  Unless you think that suddenly your situation is going to change, either better or worse,  then you need to consider today’s new reality as the basis for how much you can want to spend.
2. Consider your variable versus fixed expenses.  Rent is not fixed and if moving back in with Mom is not an option for you, then you need to accept that you have to pay for the roof over your head.  There is some comfort in knowing your monthly payments won’t change. Consider a fixed payment for an extended period.  While these rates may not be as attractive as the variable ARMs, if you are concerned with your income stability then you have to consider how much risk you can accept. 
3. Take advantage of the low interest rates.  Now may not be the time to get into that dream house unless you are sure of your future finances, but with the low interest rates you are still able to get a lot of house.  There are some very good houses out there, if you can recognize the right fit for both your pocketbook and your dreams.

 VIP Realty DFW