Everyone's question these days seems to be "Is now the right time to buy"? I have come up with a chart that helps you make the decision if now is the right time to buy!
Current Home New Home
|
Sell
|
Spread
(What it would cost you to move)
|
Buy
|
|
$100K
|
$100K
|
$200K
|
|
(Value appreciates 10%) $110K
|
$110K
|
$220K
|
|
(Value depreciates 10%)
$ 90K
|
$ 90K
|
$180K
|
The above chart is an example of a "move-up" buyer determining whether it is a good time to purchase an upgrade property.
Now ask yourself this question... "When does it make more sense to move up- when prices have gone up less or when they've gone down more?"
If you have answered when prices go down, you are the lucky winner!!!! You profit the most when the spread is less. So whether you are discouraged that you don't have enough equity or down payment in order to move, ask yourself this question....
"If you don't feel you can move up comfortably now, how will you be able to do so when prices go up further?"
***One last thing to ponder... When interest rates go from 6% to 7.5% the prices of homes would have to go down 14.7% in order to keep the same monthly payment.
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fantastic reasoning. it makes sense. you should do this as a video so we can heare it explained by you. thank you nicole for an informative reasoning