DC Real Estate News : James Finds Homes

US Coast Guard PCS Relocation - Real Estate Directory

PCS moves are a fact of life for the families of the United States Coast Guard.

Military Relocation Expert, Margaet Woda, helped to create Directories for other branches of the military (see links at the bottom of this directory.)  I want to Thank her for her efforts and ideas for this format.

Moving to a new city across-country is never easy for Coast Guard families. I have worked hard to find agents that not only WANT to work with relocating Coast Guard families, but understand the special needs and situations.

These REALTORS are the local experts that understand these special needs and sometimes difficult moves.  They can answer questions about neighborhoods, home prices, commute times, even where to shop and the best restaurants.  They also have Websites and Real Estate Blogs; which provide information to families and individuals planning a relocation to a new part of the country.

If your destination base or a local agent is not listed, I will find a local Coast Guard-friendly agent for you.  Just Contact James Downing, Washington DC REALTOR, with the name of your base, your contact information, and your anticipated arrival date.

This Directory is updated monthly.  REALTORS who wish be added, or to recommend a REALTOR you have worked with in a previous move; contact James Downing.

USCG BASES/STATIONS  and REALTORS WHO SERVE THE AREA

Updated (2/27/08)

ALASKA -

Air Station Kodiak - ISC Kodiak

Sector Juneau

CALIFORNIA -

Air Station San Diego - Sector an Diego

Air Station Los Angeles - Sector Los Angeles / Long Beach

Air Station San Francisco - Sector San Francisco

CONNECTICUT -

USCG Academy (New London)

DISTRICT OF COLUMBIA -

USCG Headquarters - Airstation DC - Station DC

James Downing- I specialize in Relocations into the DC Metro area as well as 1st Time buyers and will be able to answer as many questions about home buying as you can ask! As an Accredited Buyers Representative (ABR); I have additional training and experience to represent buyers in their Real Estate purchase.

Chelle Gassan - Military Relocation Specialist.  I understand all to well what it is like to move so often and I take that to heart when helping my fellow military families relocate. I have also helped several Navy, Army and Air Force whose new duty station is the Pentagon.  Not to mention, all the Marines who call Quantico home.

FLORIDA

Air Station Clearwater - Station Sand Key - Sector St. Petersburg

Air Station Miami - Sector Miami - Station Miami

Cyndee Haydon - Serving Clearwater | St Petersburg | Tampa Bay | All Beach Communities | Waterfront Luxury Homes | Waterfront Condos | Pool Homes | Military Relocations | at 727-710-8035| http://www.sandbarstosunsets.com

Sector Mayport (Jacksonville)

Brittany Stewart- I have dedicated myself to building rapport with successful professions in the area to get you the most for your dollar. My targeted areas in Jacksonville consist of Northeast Jacksonville, Southside, Ft. Caroline, Intercoast West, The Beaches, Mayport NS, USCG Sector Jacksonville and new construction. However, I conduct business anywhere in the Jacksonville area.

Sector Key West

GEORGIA -

Air Station Savannah

HAWAII -

Sector Honolulu  

Sally Cheeseman - Applying 120% effort through all real estate transactions for a smooth and safe landing! Specializing in Military and Relocations to Hawaii. Representing Buyers/Sellers in residential sales.

David Kucic- My blog is dedicated to the men and women of the Armed Forces serving in Hawaii, enroute to Hawaii or dreaming of an assignment in Hawaii. David J Kucic LLC, RA, CRS, GRI, ABR, AHWD, e-PRO.

LOUSIANNA -

ISC New Orleans - Sector New Orleans

Lisa Heindel- New Orleans West Bank Real Estate Specialist. Helping home buyers, home sellers and military transfers in Algiers, Algiers Point, Gretna, Belle Chasse, Terrytown, Harvey, Marrero, Westwego and more.

MARYLAND -

Coast Guard Yard - ELC Baltimore - Station Annapolis - Sector Baltimore

Margaret Woda - Helping Maryland home buyers, sellers and military transferees in the Baltimore/Annapolis/D.C. triangle - specializing in Anne Arundel County and nearby Howard and Prince George's Counties.

MASSACHUSETTS -

Air Station Cape Cod

Sector Boston - Station Boston - ISC Boston

MICHIGAN -

Station Grand Haven

Renee Parker - Greater Lansing Area Realtor ~ Servicing all your real estate needs from the first time home buyer, relocating to the area, investor to retirement downsizing. "Honest and Hard Working, like you!

NEW JERSEY -

Air Station Atlantic City

NORTH CAROLINA -

Air Station Elizabeth City  - ISC Elizabeth City

SOUTH CAROLINA -

Sector Charleston

TEXAS -

Sector Corpus Christi - Air Station Corpus Christi

Sector Houston/Galveston - Air Station Houston

VIRGINIA -

NAVCEN - TISCOM - Personel Command - The Pentagon 

Cindy Jones - Utilizing Technology, Experience and Uncompromising Service to make your Northern Virginia real estate transaction as stress free as possible. Serving buyers, sellers and military relocations in VA.

Magaret Woda - Helping Maryland home buyers, sellers and military transferees in the Baltimore/Annapolis/D.C. triangle - specializing in Anne Arundel County and nearby Howard and Prince George's Counties.

Brian Block - Brian Block is proud to serve the Northern Virginia real estate market. View his website for the latest listings and homes for sale in Northern Virginia and search all active homes.

WASHINGTON STATE -

ISC Seattle - Polar Ice Breakers - Station Seattle

Leslie Bloss- Leslie loves her job--the referrals she receives reflects the great job she does! Listings/Relos in Seattle/Bellevue areas, including Queen Anne, Madison Park, Capitol Hill, and Wallingford.

_______________________________________________________________________________________

Disclaimer:  This directory is provided to assist Coast Guard personnel, their families and other consumers; No endorsement of any agent or guarantee of satisfaction is intended or implied by ActiveRain or James Downing and Coldwell Banker Residential Brokerage.

Other military base directories include AIR FORCE PCS Relocation - Real Estate Directory, U.S. NAVY PCS Relocation - Real Estate Directory, Marine PCS Relocation - Real Estate Directory and Army PCS Relocation - Real Estate Directory .

Where did that Email come from? Track the IP Address !

These are the days of Phishers and Spammers.  How many of those emails have you received from folks wanting to "do business with you"?  All you need to do is provide them with your Bank Account #, PIN, Middle Initial, etc.

Why just last week;  - I won 2 Million British Pounds in some lottery....  - Had not 1 but 3 Notices from the IRS, that I have overpaid (yeah right) and they wanted to "Rush" me my refund! ....    - I even had the Personal Assistant of Aristide, the former President of Haiti.  He needed me to help the former President with transferring some "funds".

Lucky me!  Everyone wants my help!

Then we have those folks who answer our Craigs List Ads.  Do you know how many Drs want to rent or buy my places in DC?  It is incredible.  All they want to do is wire some money to me!

BUT TODAY..... a New one.....   LOOK - It's a contact Email from Active Rain !!!

However... an alarm sounded in my head.  Some one wants to discuss using my services  ASAP.  I needed to contact them via their email address.

Hmmm....

But wait - all E Mails from Active Rain show the IP Address at the bottom....

What is an IP Address?  Well the long version is here.  The short version... it tracks where the computer is that sent the email.

There is a great tool I found (I am sure there are others - but here is one I use):     IP Tracker

When I keyed in the IP Address provided by Active Rain Guess What?  It came from:

ISP	AVISONET, ISP Cote d'Ivoire
Country	Cote d'Ivoire

Well, I will have to pass on helping out another person from the Ivory Coast.  I am sure I have won another lottery!

IF you are not sure where something is coming from.... Track the IP address.... It may save you some future Spam or a headache!

   

Call James for all your Real Estate needs and questions; servicing Dupont Circle and the entire Washington DC  Metro area.

What is Radon? Should I test for it?

What is Radon? Should I test for it?

I recently had a Buyer ask me about Radon.  His wife mentioned to him that she heard from someone (who I think heard from someone) that radon was bad it should be tested for.  But he didn't really know anything about it.  Most people do not.

WHAT IS IT??    Radon is a gas that emits from the ground in virtually every state (and all over the world).  It is colorless, odorless, tasteless, and a radioactive gas. Radon comes from the decay of uranium in rock,  and soil. If you do not test for it, there is no way of knowing how much is present in your home.

IS IT BAD??      Radon is said to be the second most frequent cause of lung cancer, after cigarette smoking.  Avoiding high-exposure to Radon is pretty important.

IS IT IN MY HOME?  There are low levels of radon outside. Indoors, with limited ventilation, there can be high levels. Radon enters the home through cracks in the floors or the foundation of the home; and be particularly high in basements.   The only way to know is if you have your home tested.  Having a Radon test done is fairly easy and not very costly.  It involves taking air samples over a couple of day period and then sending the air samples to a lab for testing.

Radon risks are higher in homes with basements and in homes that are sealed up tightly (as in homes in Northern states during the winter months).

WHAT IF I HAVE IT??    Radon levels can vary with weather conditions, so if you find a high level; many experts say you should have a second test done before you plan to try and correct the problem.  Radon reduction systems can bring the amount of radon down to a safe level. It can be costly, but depends on the size and design of your home.

Typically the reduction systems involve sealing up the cracks in the foundation and installing ventilation systems to keep gases from entering through the foundation and into the home and vent these gasses outside.

SHOULD I TEST FOR IT??   The cost for test may be well worth it - especially when your families health is at stake.  Again, it is more important if your home has a basement or if you are using your basement as a living space.  If you are on a 5th floor condo, it probably does not make much sense.  You should discuss with a home inspector or a licensed Radon Inspector.

For more information about Radon visit the EPA/Radon Website

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Call James for all your Real Estate needs and questions; servicing the Greater Washington DC area.

What is in my Monthly Mortgage Payment?

Well the First most important thing when you are obtaining a mortgage on a property is: WHAT DOES YOUR MORTGAGE PAYMENT include?

Knowing what type of mortgage you have is part of the answer to this question!

Most Mortgage payments include a couple of components. 

First and (sadly) foremost is the Interest on the loan.  Unless you have an Interest-Only Mortgage Loan; your payment will also include Principle.  (Principle is part of the actual sum of money you are actually borrowing / Interest is the cost of borrowing that money). 

Your first payments are mostly interest; every payment afterwards you pay more and more towards the principle.

Along with the Principle and Interest, you will have (what I have discussed to death in recent posts) your Escrow Payment.

Your Escrow payments generally include Property Taxes and Home Owners Insurance.

Most states (excluding the District of Columbia) require lenders to escrow taxes.

Also in your monthly payment is any PMI or MI  (Private Mortgage Insurance).  PMI is required by most lenders when you put less than 20% down on the property.  (In place of PMI you may have a 2nd mortgage or some lenders offer a higher interest rate loan where the lender 'pays' the PMI as a cost of the loan).

Example:

Purchase Price:  $350,000              Downpayment $35000 (10%)           Interest 6%          30 Yr/Fixed Loan

Payment =

Principle/Interest     $ 1888.58

PMI (varies)            $ 165

Escrow Payment:      $ 300             (1/12th  Taxes $3000/yr   Insurance $600/yr)

Total Payment:        $2353.58

Search for Homes in Washington DC                DC Real Estate News

Call or email me for any questions about Mortgage Payments or Escrow.

In Escrow vs. Escrow Account ...

With my recent posts about "Escrow Accounts" some folks have emailed me questions about what "Escrow" really means.

I want to clear up a few points....

What is "Escrow" or "Being in Escrow"  compared to an "Escrow Account" ??

In different parts of the country we have different words, language or terms for the same thing (or process).  It is like saying  'Toe-may-toe' or 'toe-ma-toe' ... 'pea-can pie' or 'peh-con pie'.  Well you get the idea...

So in terms of "Escrow" there are a few things I perhaps should have started with before I posted a blog read by people from all over the country.

There are Title Companies  also known as 'Escrow Companies'

When you make an offer on a property you typically place your Earnest Money  deposit in "Escrow"with either your Real Estate Brokerage or the Title/Escrow Company.  This money is put TOWARDS YOUR CLOSING/DOWNPAYMENT costs.

When you have a purchase contract accepted by both buyer & seller you are said to be "Under Contract"  OR "IN ESCROW".  Same basic thing - just depends what part of the country you are from.

Lenders (most of the time) set up an 'ESCROW ACCOUNT' whereby a portion of your Monthly Mortgage Payment is placed into; so they (the lender) will be able to pay your Property Taxes and Home Owners Insurances.

Basically this : An "Escrow Account" by definition is (per Wikipedia) a legal arrangement in which an asset (often money, but sometimes other property) is delivered to a third party (called an escrow agent) to be held in trust pending a contingency or the fulfillment of a condition or conditions in a contract such as payment of a purchase price. Upon that event occurring, the escrow agent will deliver the asset to the proper recipient, otherwise the escrow agent is bound by his or her fiduciary duty to maintain the escrow account.

So next time you read about "Escrow" - make sure you know what kind of Escrow or escrow account you are reading about.

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Call James for all your Washington DC Real Estate needs and questions

What IS an Escrow Account?

Well by definition: it is A trust account held in the borrower's name to pay obligations such as property taxes, home owners insurance premiums and flood insurance (if required). 

Do lenders require it? 

Many do yes and for good reason. If your home is destroyed by a fire, the lender will have lost his collateral.

If you do not pay your property taxes, the government can foreclose on your property in order to get the owed taxes and again your lender could lose the collateral.

So obviously your lender wants to make sure your insurance premium and property  taxes are always paid!

How does it work?

Your bank or mortgage company (or company they have that does the 'serving'), collects your property taxes and your insurance premium in a special account. This money is then used to pay your taxes and insurance premiums when the as they become due. The lender estimates the balance needed to be kept in this account based on the estimated amount necessary to pay the taxes and insurance throughout the year.

This amount is then added to your monthly mortgage payment.  At closing the buyer  pays "Pre-paids" which are used to start up this account.

Can the Lender ask for more money in the Escrow Account than needed?

A little.  RESPA (The Real Estate Settlement Procedures Act) sets a limit on the amount that a lender can require a buyer to put into an escrow account to pay taxes and insurance. The lender or servicer will review the amount in the escrow account annually and if there is an excess of $50 or more must be refunded.  If there is not enough - the lender will ask for more money to be placed into the escrow account.

RESPA doesn't require lenders to set up escrow accounts but, some government loans (FHA and VA loans) may require escrow accounts as a condition of the loan.

Escrow accounts usually will include a "cushion" or extra amount which helps ensure that the lender will have adequte funds to pay the taxes and insurances.  There is no cushion required by RESPA, however it limits the amount of the cushion to 1/6th of the total amount of items paid out of the account, or 2 months of escrow payments.

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Call James for all your Washington DC Real Estate needs and questions

You have No Agent - WHY?

Every-time I hold an Open House I am always amazed at those (seemingly serious)  home buyers that are NOT working with an Agent.  While this; as a REALTOR, is a wonderful thing; that is if I am able to gain some rapport and trust in the 5 minutes I talk with them; I wonder WHY?

Why serious Home Buyers run out to look at homes without "hiring a REALTOR"; amazes and worries me.  But then I remember my first (couple of) homes I bought.  I did not understand Real Estate until years later.  Why did I, a buyer, need a REALTOR?

The point here is EDUCATION.  When I first started a Real Estate Blog; the purpose was to educate buyers.  If in the process I found a new buyer, all the better.  I have been - and always will have - the philosophy of "FREE Real Estate Advice".  If they hire me great - if not hopefully it helps our profession.

WHY DOES a Buyer Need a REALTOR?

They have the Internet.  They know at what prices homes are selling.  They can view what homes are for sale.  Buyers googled enough to know they need a "Pre-Approval Letter" and a Home Inspection. They need a Title Company and may know about Title Insurance.

So again : Why do they need a REALTOR?

Hey - I like Google and the Internet too!  As do most of us in my Gen - X PLUS group of the population.  When I googled a slight "Pain in my side" that I had last winter - it was either Pancreatic Cancer, a pulled muscle or gas.  Thank you WEB-MD.  Luckily for me (after weeks of no sleep and a new WILL I made) it was NOT anything to worry about.  That is why I have a DOCTOR !!!!   Now I have Insurance; yet I still paid the Doctor and paid for tests (that I most likely did NOT need).

Who pays for a REALTOR?  Well the seller - NOT the Buyer. 

Now some will argue that since the Sellers traditionally PAY Real Estate Commissions, the buyers (in the long run), is paying the commission indirectly.  Yes but who is the EXPERT?  The Buyer?  The Seller?  GOOGLE?

As I tell many of my nervous clients.  Buying and Selling Real Estate happens everyday; everyplace.  It is routine - it happens EVERY DAY.  This is what Real Estate Professionals do - it is our profession.

Some Real Estate transactions are as easy as pie.  A buyer finds a home.  Makes an offer.  Gets a loan. Closes on the property and gets the keys a few weeks later.  DONE.  EASY!

However, for every "SMOOTH" transaction; there is a another.  Sooo many things CAN or COULD go wrong.  Is the inexperienced Buyer thinking of them?

Should I have a Home Inspection?     What is an Appraisal?   What do I do if the Appraisal is wrong/too low/too high?  Am I paying too much for the home?  What is it REALLY worth?   Tax issue?   Title Issue?  What is Rent back?  Pre-settlement?  Post Settlement?  The WHAT broke the morning of settlement!!!??   I have to pay POINTS?? My Lender told me WHAT?   Escrow?  What is Escrow?

While Google may help - it doesn't have the experience.

A few things a BUYER should know:

In most states (including Virginia, Maryland & Washington DC): If you walk into a  property at an Open House - the Realtor is working FOR the SELLER.  Getting the BEST deal for the SELLER.  Anything you say or do CAN and WILL be used AGAINST you to get the SELLER a HIGHER price or better deal for the home.  That is the LAW.

Any REALTOR who shows you a property (without a WRITTEN & SIGNED Agreement) is (BY LAW) working FOR THE SELLER. 

How does a Buyer Hire an Agent?  They need to interview agents. Find someone they feel comfortable with, who is knowledgeable and they like and "fit" with.  We all have different personalities - we are not all meant to work together!

They need a BUYERS Agent.  A signed written contract (if even for a weekend or week); assures them their agent is working FOR THEM.  To get THEM, the buyer, the BEST Price and looking out for their BEST INTEREST.

The buyers cost : Well as I said before - the seller is paying the commission.  Why would you not?

Who would you want to help you make a decision? : The other teams coach or your coach?  The other guys attorney or your attorney? 

Buyers : Get your OWN REALTOR !!!

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Call James for all your Washington DC Real Estate needs and questions

What are Buyer's Closing Costs?

When you purchase a home there are many costs and fees that are associated with the purchase of home. Many buyers think that if they can 100% loan they won't need any cash at closing.

The Down-payment (or lack thereof) is only a part of the closing cost of buying a property.

Here is a breakdown of costs and fees associated with buying a property in Washington DC. Estimates are averages based on a sale price of $300,000.

Loan Origination Fee: ??                      - Some loans have a loan Origination Fee.  See more info below *

Loan Discount: ??                               - Many times it's possible to "Buy-Down" your interest rate. See below**

Appraisal Fee: $300-$450                    - The lender will send out their Appraiser to estimate the property value

Credit Report Fee: $ 20 - $60               - Same reports - different fees.  Anything over $30 is too much!

Underwriting Fee: $200 - $400              - Another Lender Fee       

Tax Service Fee: $75 - $95                   - Fee for setting up an escrow acct/company to pay the property taxes

Settlement/Processing Fee: $250          - Another Lender Fee

Application Fee: $500                           - Only Some Lenders will charge this - Question it and ask why!

Broker Admin Fee: $200 - $300             - Fee charged by Real Estate Brokers

Attorney Fees: $200 - $400                  - Charged by Title/Escrow Company for transaction

Title Search: $250                               - Paid to search the public record

Title Exam: $65                                   - Paid to Examine the public records for the property

Title Insurance Binder: $75                    - A fee for the Title Insurance Company

Lenders Title Insurance: $500 -$1000   - Based upon LOAN amount -  Insures Lender      

Owners Title Insurance: $1000 - $1500    - Insures Owner against problems with the Title to the property

(Different Title Co's divide totals in different ways - TOTAL Title Insurance $1500 - $1700 for 300k home)

Notary Fee: $50                                    - Charged by some Title/Escrow Companies

Overnight Charges: $50-$75                  - Charged by Title Co to send completed Loan Packet to Lender

Recording Fee/Tax Stamps: $75-$175     - Fee charged by Local Government to record the new loan/deed

Transfer Tax: $3300                              - TAX - IN DC 1.1% to 1.4%.  Based upon Purchase price.

Survey: $150 - $250                              - Most lenders will require a survey. (NOT needed for condos)

Flood Certificate: $10 - $20                    - Fee charged to determine if property is in a Flood Zone

PRE-PAID Items

Interest: ??                                          - Pay at closing the interest for the days left in the current month

Hazard Insurance: $300 - $500              - 1st Years Home Owners Insurance (NOT required for Condos)

Hazard Ins in RESERVES: ??                    - 2-3 months of Home Owners Insurance put in escrow.

Property Tax (3-6 months): ??                - Lenders require this in Escrow. Based on next Tax due date            

Pro-Rated Condo Fee: ??                       - Monthly condo fee / # of days left in current month

Condo Fees: ??                                    - Most Condos require collection of 1st months condo fees at closing

Move-IN Fees: $150 - $400                    - SOME Condo Buildings charge this fee.

Pest Inspection: $30 - $100                   - Required by lender unless in a mid/high-rise building

Home Inspection: $300 - $600               - Based upon size of property

* Loan Origination Fee:  Most loans should not require an origination fee.  Unless it is a special program or you have less than perfect credit.

** Loan Discount Fee: Some buyers opt to pay up front for a lower interest rate over the life of the loan.  A good idea if you plan on living in the home for a LONG time (7+ years). For more READ THIS

One the biggest Issues I find is that banks and title companies have different names for each of the many fees.  One lender may have an application fee - but no underwriting fee.  Or they have a processing fee instead of a Document Review fee.

When comparing lenders; ask for a GOOD Faith Estimate (somewhat standard form in writing) from each.  Look at the total closing costs.  If number are WAY off from lender to lender ask why!  It is also a good idea to ask your Realtor take a look at the numbers.

Happy Home Buying!

What IS an appraisal?

An Appraisal is a report completed by a (licensed) expert; determining the value of the property.  Typically when you are buying a property with a mortgage; your lender will order an Appraisal.

The duties of the Appraiser is do determine; just how much the (Subject Property) is worth.  They do this by looking at the home.  Often they will measure the size of the home; look at the property condition, updates, view, location of property, type of appliances.

They then will compare this 'Subject Property' home to other homes that have sold in the area.  The Appraiser takes the SOLD Price of the Comparative homes and ADDS or SUBTRACTS from the SOLD Price; based upon how it compares to the subject property. 

Example:   THIS IS ONLY A SIMPLIFIED EXAMPLE....

'Subject Property'                                Comparable 1                           Comparable 2

List Price: $350,000                      SOLD Price  $325,000             SOLD Price     $360,000

Upgraded Kitchen            (better kitchen)      + $5,000            (not upgraded)    - $7500

extra large lot                  (same size)                0                   (smaller lot)      - $5500

View of US Capitol      (view of entire city)      + $ 5,000               (no view)        - $5000

   

Price  $350,000                                     $ 335,000                                $ 342,000

Appraised Price : $ 338,000

Years ago when the Real Estate Market was *HOT* Appraisers would most likely have easily Appraised this property at $350,00.  Why?   When we had Multiple Buyers making offers on properties that were on the market for only a few days - the Appraisers felt that this was indeed the "Fair Market Value".

"Fair Market Value" - the amount that a buyer is willing to pay a seller for a good or service.

How much does that Interest Rate drop save me?

I remember last spring when I had a buyer that had waited just over a year to buy his home.  He had been pre-approved and ready to go; but then stories of the "BUBBLE" scared him away.

He felt that the market outlook in Northern Virginia looked better; so he was ready to buy.  What shocked him was how the increase in interest rate equated to a higher monthly payment!

A couple of year ago we were seeing 5% (or lower); this summer 7% or higher was not uncommon.

Let's look at some examples:

Let's assume a $350,000 Loan and all these examples have 20% down.

We will compare the Principle & Interest (P&I) at different Interest rate percents.

5% = P&I  of $1503               5.5% = $1590           6% = $1679         6.5% = $1770    7% = $1863

Now we don't see Interest rates change THAT quickly; but even 1/2% can mean a difference of about $100/mo.

Lets now look at the difference in a Price Change with the same Interest Rate:

                    Now that DREAM home is $350,000 - but what if we wait (and the price changes?)

Price Drops at a constant 6% Interest Rate:                   Price Increases at 6% Interest Rate:

350k = $1679    340k = $1631    330K = $1583                  360k = $1727          370k = $1775

Now what if you waited for the "Bubble to Burst"; while Interest Rates Went UP?

Well - in the Washington DC Market - the Bubble never burst - but some home prices did drop slightly.  Lets's assume our  $350,000 DREAM HOME dropped to 340K; but our 5.5% Interest Rate went up to 6.5%.  (Just like  what happened to my client.)    .......Did we save by waiting for the price to drop?

$350,000 @ 5.5% = $1590           $340,000 @ 6.5% = $1719   WOW - We LOST!

In order to SAVE if the rate increased by 1% the price of the home would have to had to drop to $313,000.

$313,000 @ 6.5% = $1583 .... The price would have dropped by over 13%.   

-NOT a MATH Major ??     - That's OK -      The bottom line is THIS:

A change in Interest Rates can tend to affect your monthly mortgage payments much quicker than small price adjustments. 

If prices are Low  AND  Rates are LOWER.... It is a good time to consider buying now rather than later. 

That "DREAM HOME"; may drop 5 or 6k IF it doesn't sell over the fall & winter months; but will rates increase?  Maybe? Maybe not?

As always; consult your mortgage professional or financial planner : these numbers are examples only