Should You Buy A Home Now? Will It Cost More To Wait? {Infographic}

Reblogger
Real Estate Agent with Century 21 Showcase REALTORs 01468388

Nina Hollander, a REALTOR in North Carolina, researched and wrote this article that perfectly addresses the question of whether to buy now, or wait.   What are your thoughts?

Original content by Nina Hollander, Broker

Lots of people seem to be asking the question ~ "Should I buy a home now or wait another year? And if I wait will it cost me more to buy?"  What does the cost of waiting actually mean? The cost of waiting to buy is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.

 

What determines the cost of waiting to buy?

  1. If interest rates increase while you wait, you will pay more in monthly mortgage payments.

  2. If home prices rise while you wait, you will pay more for a home and increase your mortgage payments even if interest rates don't increase.

  3. If both home prices and interest rates increase, you will increase your mortgage carrying costs, assuming you even qualify for a more expensive home at a higher rate.

 

The infographic below clearly spells out the costs involved in waiting to buy a home if both home prices and interest rates increase in the next year. Interest rates have stayed at historic lows (especially post-BREXIT), but no one can guarantee they will stay this low indefinitely. Home prices have increased throughout 2015 and 2016 year-to-date and with the lack of inventory in many markets throughout the US, it's reasonable to assume that home prices will continue to increase. In Charlotte, North Carolina median and average home prices have increased 5.2% and 5.12% respectively on a year-to-date basis. It doesn't take much to start increasing your monthly mortgage payment.

 

Should You Buy A Home Now Or Wait?

 

So should you buy a home now or wait? Will it cost you more to wait? The answers seem to be "buy now and don't wait" and "yes, it will cost you more to wait to buy."

 

IF YOU DON'T WANT TO WAIT TO BUY A HOME AND RISK HIGHER MORTGAGE PAYMENTS, CONTACT CAROLINAS REALTY PARTNERS

WE CAN HELP YOU FIND YOUR DREAM HOME!

 

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Nina Hollander, Broker, Realtor / REMAX / Carolinas Realty Partners / Ph: 704.779.0813 / F: 704.341.3346 / E: Nina@NinaHollander.com / W: www.GreatHomesInCharlotte.com

Nina Hollander
Broker, Realtor, CRS, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with RE/MAX Executive Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: http://activerain.com/blogs/ninahollander
Search for Charlotte Area Homes: www.HomesInCharlotteArea.com

2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015 Charlotte Magazine 5-Star Customer Satisfaction Award Winner

 

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

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M.C. Dwyer, MBA, REALTOR    call/text (831) 419-9759

Century 21 Showcase REALTORS Cal BRE 01468388

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Comments (2)

Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

This is a good choice for a re-blog as it really shows how much more a home could cost with rising interest rates.

Aug 31, 2016 08:23 PM
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Good morning Gabe Sanders !    With so much uncertainty about the timing of the next increase in rates by the Federal Reserve, it's worth considering.   Thanks for stopping by!

Sep 01, 2016 12:44 AM

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