Expert: Sue Bernstein - 8/1/2004

Question
Hi, I am a first time buyer, I wana buy a condo in Southern California (Orange County).
I can see that the real state price has being decreased from May 2004 about 7% in this area.
supposing the interest rates will remain constant, should I buy now or wait untill the prices decrease enghough and buy it?

Sincerely yours
Frank

Answer
Dear Frank,

No one is able to foretell how the market will go in advance.  I am shocked to hear that prices have decreased 7% since May in Orange County.  Everything that I have seen shows prices holding steady.  Interest rates are expected to go up so if you are able to buy now I wouldn't wait since even if prices go down and interest rates increase you will gain no advantage.  I hope this answers your question and that you find it helpful.

Sue Bernstein