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I’ve been hearing from my clients and have read some comments by others that people are saying they are going to “wait” until home prices come back down and it’s more of a “buyers’ market” before buying their next home. That is an interesting thought, but it begs the questions:

• When will those prices come back down, and from what level and to what level will they go to?
• Will the come back down price be lower than it is today?
• What is the cost of your current housing doing?
• What will the cost to borrow be IF, and it’s a big if for a reason, if the cost to you to borrow LESS MONEY is higher than the cost of borrowing MORE MONEY is today 

You see, I am not sure who it is that is guaranteeing that home prices will fall below where they are today, and by how much they are guaranteeing those prices will fall? I’m not saying it can’t or won’t happen, I am saying the facts are it might not ever happen that home prices ever are lower than they are today; and I am certain that if they do, mortgage rates will be higher, maybe significantly higher, than you see today.

Let’s look at some numbers, we have seen home appreciation above 13% across the country, with higher rates at the lowest price points. Prices are still climbing even though we are seeing fewer offers on each property, multiple offers exist on 65% of all sales according to the MBA. Don’t ignore the fact that new listings are up 4% year over year, so please stop blaming inventory!

We also need to look at mortgage rates. With inflation, as measured by PPI at 7%, how long will it be before we see rates go higher? Most experts expect the first move in tapering FED activity is to slow or stop MBS purchases. Where do you think rates go when that happens? 4%, 5%, higher? What does the payment look like at higher rates? Even at lower loan amounts in the future if there is a drop in home prices; higher rates may still make buying today a better long-term deal!

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Posted On Monday, 19 July 2021 00:00 Written by


Cathy DrozCathy Droz, Founder/CEO is an accomplished automotive journalist, author, speaker and radio host with a passion for the automobile industry. A native of New York, she was just 17 when she purchased the family sedan, which evolved into a 40-year career including opening a full-service automotive advertising agency, and, most recently, publishing her first book, “A Woman’s Guide to Buying a Car with Confidence and Street Smarts – Don’t Let These High Heels Fool You.”

Highly respected by industry influencers, Cathy has test driven more than 500 vehicles, giving her insight and knowledge on virtually every make and model on the market to effectively educate the car buying consumer and make the search for the perfect automobile a pleasant and rewarding experience.

Cathy is currently Founder and CEO of HER Certified® — which stands for Honesty, Excellence and Respect — the industry’s first comprehensive certified dealer program aimed to help dealerships better serve female car buyers. The full-service “trifecta” employee training is designed to ensure the dealership not only meets, but exceeds, a woman’s expectations when buying or servicing a car. To be a part of the program, qualified dealerships who meet the criteria pay a fee and then receive items and services such as sales training for up to 100 employees that focuses on how to handle sales with female customers. Additionally, employees take the sales training online and must pass with 85 percent or higher. The sales training includes downloads of a workbook and her book for each employee taking the course.

A champion of community service and leadership, Cathy is a member of the Phoenix Automotive Press Association, a past President and Executive Board Member for Silent Witness, a distinguished member of Worldwide Who’s Who of Entrepreneurs, a 2016 Phoenix Suns Amazing Women award winner, the 2018 Honoree for Outstanding Women in Business, a volunteer for the Retired NFL AZ Legends, St. Vincent DePaul, and Alice Cooper’s Solid Rock charity, and donates 4% of all sales to the Girls Scouts of America to help promote financial literacy in young girls.

Cathy resides in Phoenix, Arizona, with her husband Manny. She is the proud parent of three children and nine grandchildren.

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