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Price and Cost

By
Real Estate Sales Representative with The Chin Sells Team at Weichert Realtors

Just wrote an article for my main blog about the difference between price and cost.

People are looking for a double-dip in prices.  But everyone agrees that interest rates will continue on their upward trend.

Housing costs going up

I give an example of prices decreased 8.3% and interest rates only increasing 1%.  In my example, I show how it costs the buyer an additional $9,751.03 more to purchase the same home.

The full article can be found here.  

 

Scott Petersen
Client First, Realtors - Canton, MI - Canton, MI

You are exactly right. A slight increase in interest rates will increase the cost of the home greatly. This is really hidden cost. I had a couple really smart buyers jumping and making offers the last couple months trying to get a ahead of the interest rate increases that are coming for certain.

Mar 02, 2011 02:51 AM