Here is a little bit of interesting news, if you watch your dollars and purchasing power.  The last month for which figures are available, November.  These numbers are from the National Association of Realtors for November 2012 and 2013.

November 2012  Average Price = $227,900  Interest Rate = 3.32  Principle and Interest = $1,000.61

November 2013  Average Price = $244,500  Interest Rate = 4.29  Principle and Interest = $1,208.53

What this means is that buyers who waited to buy this year instead of last year, saw prices go up and interest rates go up.  With increased prices, and rising interest rates, purchasing power for buyers decreased a whopping 9.7%.  Simply put, a buyer who qualified for a house valued at $200,000 in 2012 now qualifies for a house valued at $180,600.  Couple this with an increase of home values of just over 7%, the true value of a house that same buyer can buy this year compared to last year, using $200,000 as our model, is now $168,000.  This translates to $32,000 in lost purchasing power.

To a buyer, this could mean you can no longer buy in the neighborhood you want to be in.  Or it could mean you simply can't find a house large enough.  Or you can't get a home in the school district you want.  Or it may mean you will stay in your current home.  This year, home prices are rising, perhaps even more than last year, and there are experts predicting interest rates will be close to 6% by year's end.  If you are in the market to buy a home, protect your purchasing power and do not wait.  Act now or you just might miss the opportunity to buy your dream home.  Start searching for your home now.  Don't procrastinate!!