A Seller Market...Really?

Many of you may have noticed if you are in the market for a new home that the pickings are slim, and what is available is moving fast. It seems like just overnight we went from having a surplus of homes for sale that we never thought we would sell, to todays market where buyers are fighting fast and furious for every house that comes on. Is this temporary? That of course is anyone's predication, however, if you believe everything that you read the answer would be yes. The experts tell us that this is a temporary situation while the banks gather forces and begin the new wave of foreclosures. While at the same time the rate of shortsales has not slowed down. So what is a buyer to do, wait it out until there is a bigger and better selection again? The numbers say the time to buy is now. While a buyer may be in more competition than they have seen in some time, rates are the story. With interest rates still being at all time lows a buyer stands to save thousands of dollars in interest by buying today vs waiting and taking the risk that rates may rise....For Example A buyer that buys today at 3.5% interest over 30 years on a 150,000 loan will pay 92,484.13 in interest. That same buyer could wait for a surplus of housing choices and maybe pay 5,000 less for the house due to supply and demand, but rates may have raised to 4%. That same 150,000 loan is now costing them 107,804.26 in interest. An increase of 15,320.13. Lets take it one step further and rates raise to 5% (still a fantastic rate). That same loan is now costing 139,883.00 in interest over the same 30 year period. A difference of 47,398.00, all in order to save 5,000. You do the math...Now is the time to buy.