Just got finished listening to my favorite song of all time R.E.M.’s ”Stand” well it is actually a close second to 4 Non Blonds but we’ll save that discussion for later.  Now that I have regressed and even worse dated myself my point is…… let’s stand in the place that we are right now! 

 I have two clients that purchased let’s say “starter homes” here on the Monterey Peninsula last year (that would be 500-700K range).  They both were able to negotiate a sizeable discount off the list price, with a little help from their friend me :-), obtain excellent interest rates on their loans and one managed to get a special discounted, long term loan from a large bank with certain income requirements.  That loan is no longer in existence as of 12/31/07.  And they are both enjoying the benefits (tax and other) of homeownership.

So I run into one client and he is aware of the price instability around his neighborhood and tells me he is still thrilled to be a homeowner and continues to put personal touches in the home. No more white wall rentals and cramped quarters for his dog.  He understands that he got into the market when rates were substantially better than they are now and with the tax benefits and pride of homeownership he is in it for the long haul.

 My other client while still thrilled about having a home of her own, keeps checking the prices and comparing her neighborhood sales every day. I sense a tension in her voice and yet she actually is better off having purchased last year than she would be now.  With the special loan obtained at a rate and terms no longer available she could not buy the same house today.  With the down payment required in the current market place and the increased interest rate she would be out of pocket approx. 65K just to get in the home she has now six months later.  

 So I say stand in the place were you live and enjoy the opportunity of home ownership, tax benefits, freedom in decorating and whatever else owning your home may mean to you. 

 The marketplace will go up and down and if we are constantly chasing it we will be worn out.   A wise man once said “And this, too, shall pass.