If you are “thinking” about buying a new home, moving up in home size or changing neighborhoods this is the perfect time. While inventories are higher now than last year there is not a glut of homes on the market in Pensacola, Florida. Prices have declined in some areas of the city but not all, we are still seeing neighborhoods with strong sales and multiple offers.

Interest rates have been volutile lately and changing daily but still at good prices, here is what has happened recently. Interest rates have increased by 0.6 percentage points in 5 weeks.

January 24, 2008 : 5.48%        February 21,2008 : 6.04%

so with home prices declining and interest rate hikes here are a few scenerios that point to now is the time to buy.

Prices decreased by 5% and interest rates increase by 0.5%

TODAY                              SCENARIO I              SCENARIO II

Home Price                Home Price -5%       Home Price -10%

$218,900                             $207,955                  $197,010

Interest Rates         Interest Rates: +0.5     Interest Rates: +1.0%

      6.04%                             6.54%                            7.04%

Your Payment            Your Payment              Your Payment

  $1,054                $1,056                  $1,053

So the bottomline to your pocket is almost the same, showing that NOW is the time to purchase a new home and enjoy it .. why wait?

AQUARIUM UPDATE FOR DOWNTOWN!

CONDOMINIUMS AT PORT ROYAL downtown