We have received so many questions about how to know when to buy in this market… so we’ll skip the traditional song and dance about your reasons for purchasing now, and jump to a bite-size barometer: the closer you are to an all cash purchase, the longer you could wait.
Otherwise stated, the greater the percentage of your home value you need to finance, the sooner you should consider purchasing. Why? NYC is lagging the rest of the country in terms of home prices, yet interest rates are at historical lows and will likely move up before prices hit bottom. Consider which side of the equation should weigh more in your decision: the price upfront or the cost of paying that price over time (interest rates). If you’re an all cash buyer, you can afford to wait the market out a bit more, assuming a U-shaped recovery. You may wish to revisit our previous discussion on the purchasing power of low rates.
