What it will Cost (in Dollars) to Wait and Buy a Home Next Year

Real Estate Agent with William Raveis, Wellesley MA 9057816-S

Right now, local market conditions are ideal for homebuyers. Home prices are at an affordable level and interest rates are low, so if you are considering buying a home, now is the time to act.

The Natick real estate market is moving quickly and buyers have lots of options. There is a lot of inventory on the market, so you’ll be able to find the home with the features you need and the right price.

In fact, if you don’t take advantage of this prime opportunity, you will most likely end up paying more for a house in the coming months. The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all expect interest rates to increase by about one percentage point within the next year.

As interest rates increase, owning a home becomes more expensive. By buying now, you’ll secure a mortgage at a low interest rate, so you’ll pay less for your home. This increase will be seen in a very real way when buyers who wait will have higher monthly payments.

As this chart illustrates, if you were to sign for a $250,000 mortgage with a 4.3 percent interest rate now, your monthly payment would be about $1,237.18. However, if you wait and get the same mortgage later, with a higher interest rate of 5.3 percent, your monthly payment would be $1,388.26. That is $151.08 more each month.

These numbers don’t take changing home costs, which experts predict will increase, into consideration. So, between a higher interest rate and higher home costs, you will be paying much more for your home if you wait and purchase it later.

Homeowners have a higher net worth than renters and buying a home is investing in a valuable asset. It’s extremely important that you make your move at the right time so you can take advantage of favorable market conditions like the ones we are seeing now.

In this fast-paced market, buyers have lots options but houses are selling very quickly. To ensure your offer is accepted, work with an experienced agent. A local agent will help you find your dream home and prepare a professional offer that is more likely to be accepted.

Real estate agents are also great negotiators, so you can rely on your agent to help you get the best deal and then close on your new home quickly, so you can move in as soon as possible. 

Now is the time to purchase a home in the Natick real estate market and surrounding areas. If you don’t take advantage of this market, you’ll most likely end up paying more for your home and have a higher interest rate, making buying a home much more expensive. You can find more tips about current market trends on the Christine Norcross & Partners website.

To start your search for the perfect Natick home for sale, contact Christine Norcross at 781-929-4994. Our team of experienced agents knows the market well and will help you find the perfect home at the perfect price.


Image courtesy of Keeping Current Matters.


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Tarris Rogers
Cascade Sotheby's International Realty - Bend, OR
Bend Oregon Real Estate

Christine those are good points you made on why a Buyer is better off finding and buying a home now rather than later.

Apr 28, 2014 04:21 AM #1
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