Wall Street Journal: Buyers Shouldn't Wait on Falling Prices

Fear of overpaying for property is common these days, especially in places where prices continue to be unstable.

Here are some reasons why it doesn't always pay to wait on falling prices:
-Waiting for the right time can be expensive. Some buyers would have more equity today, despite falling prices, if they had bought when they were first considering it, instead of continuing to pay rent.
-Financing is fickle. Some people who were highly qualified last year can’t find financing this year because the credit market has tightened or their personal financial situation now makes them an undesirable borrower.
-Interest rates are headed up. If prices decline by another 10 percent, but interest rates increase by 1 percentage point, the monthly payment will be the same.

Source: The Wall Street Journal, Douglas Heddings (07/27/2009)