Interest rates are still at 40 year historic lows and now like never before there are a lot homes on the market. The result is more choices and people love choices. Choice is what makes this country the bst place to live. If you brak it down you can move up now it will save you money. Wait and could cost you two fold= the rates go up the prices will decline but at an equivalent rate. What do you mean - your asking let me show you:
Let's say the following hypothectical example:
You own a home with a Fair Market Value of $200,000 today but a year from now the value declines by 5% now your home is only worth $190,000 a net loss of $10,000
but if your moving up to a $350,000 price range a 5% loss would be $332,500 a net loss of $17,500.
Great you say. I just saved $7,500!!! But wait to get to this situation market trends show us that the rates we have to be on the rise as well. Let's say they go up by 1.5%
$350,000 @ 6.5%=$2,212
$332,000 @ 8%=$2,568
$356 more per month. That's a wooping $4,272 per year. Stay there the average 5-7 years and you'll pay $21,360 - $29,904 extra. Now that is a small fortune. As you can see the chips are in your favor so move up today. No time like the present.
Eddie Gutierrez
a real estate broker with Century 21 Greengarden Realty. Bridgeport's Number #1 office
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