Tuesday, August 09, 2005

NAR-ly dude!

Hey, I can't think of the right word. Vacilation. Ambivolence. Ambiguity. The NAR said sell now, but buy later, or buy now and finance better or do anything you think is right depending on how you feel. Just don't blame us when you get taken to the cleaners.

NAR President Al Mansell, of Salt Lake City, said housing shortages persist. “Because there is such a tight supply of homes available for sale, we’re now projecting the national median existing-home price this year to rise at a double-digit rate, which will be the strongest rate of price growth in 25 years,” he said. “It’s a great time to sell, but it may be a better time to buy about a year from now when the market should come closer to balance. However, postponing a purchase for another year would mean higher borrowing costs, so there are advantages to getting in now – it all gets down to a buyer’s needs, resources and time horizons.”

Lets see if we can use logic:

A. Housing shortages persist because of low supply for sale.
B. Projecting median home prices to rise at strongest rate in 25 years.
C. It's a Great Time to Sell!
D. BUT It will be a better time to buy NEXT YEAR when market will be more in Balance
E. However, If you wait, borrowing costs will be higher
F. Therefore: There are advantages to buying now

In Conclusion, You can buy now and pay a higher buying price with lower financing costs or you can wait till next year and buy at a lowere price with higher financing costs. Therefore, I am a double talking salesman who just covered my ass in both directions.

P.S. It is alway better to buy when money is expensive, because the collaterolizing asset is less.



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