Buying a home? consider cost, not just price is a published blog on Active Rain that is relevant to Real Estate. To see the entire blog, continue to scroll down.
BUYING A HOME? CONSIDER COST, NOT JUST PRICE
As a seller, you are likely most concerned about ‘short term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price so much as the ‘long term cost’ of the home.
The Mortgage Bankers Association (MBA), the National Association of Realtors (NAR) and Freddie Mac project that mortgage interest rates will increase by this time next year. In fact, we’ve already seen a slight increase and another expected early next quarter as well.
To add to a home buyer’s awareness, according to CoreLogic’s most recent Home Price Index Report, home prices should appreciate by 5.2% by the end of the year.
What Does This Mean as a Buyer?
Here is a sample of the impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if interest rates only go up to 4.2% and home prices appreciate by the 5.2% predicted by CoreLogic by December 31, 2017:
I know, you constantly hear real estate professionals say, “Now is the time to buy!” Right now, we are basing this advice on three known facts -
1. The best time to purchase is when interest rates are at the rock bottom, as are the sales prices. (The days of rock bottom pricing and interest rates are gone!)
2. Sales prices HAVE increased over the past year.
3. Interest rates have increased over the past 30 days.
Prices continue to rise month-over-month and we’ve already seen the Feds in action with an increase in interest rates during the past 30 days.
If you are considering purchasing your dream home in the next year, it may be better to do it sooner rather than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as we get farther into 2017.
So, what is YOUR cost of waiting to purchase?
If moving is something you’re considering in 2017, let’s talk! Give me a call or text at (704) 491-3310 or email DebeM@remax.net and let’s get you moving towards that dream home!
© Debe Maxwell | The Maxwell House Group | CharlotteBroker@icloud.com | BUYING A HOME? CONSIDER COST, NOT JUST PRICE