In our Near East Bay of Berkeley-Oakland and environs, a lot of Buyers are discouraged by the dearth of houses for sale in Berkeley and Oakland. But the good news is, more homes will be coming on the market in Berkeley/Oakland/Alameda in the next few months. There is still likely to be competition and multiple offers given the multitude of Buyers. So lots of Buyers think, "we’ll just wait this out". So how much will it cost you to wait one year, two years … instead of compete?
The answer might surprise you. Let’s take an example of a $700,000 house. If prices go up by 10 to 13% in the Berkeley-Oakland area this year as they’re predicted by Zillow, that $700,000 house will cost $770,000 to $791,000 next year. And more the year after that. Add to that, interest rates are likely to be at least ½ point higher next year. So, on a $560,000 mortgage, that translates to $165 more per month or $60,480 over the life of the mortgage.
So let’s see. All tolled, you can either pay $700,000 now (even if you have to compete) or pay at least $130,000 more by waiting till next year. Hmmm...maybe competing to buy a house this year doesn’t look so bad after all!
For help in navigating the New Real Estate Market in the East Bay, whether you’re buying or selling, just give us a call.
Barbara Reynolds, your East Bay real estate specialist
510-847-2409
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