Waiting to Buy, How Soon Do Homes Sell and Market Snapshots

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Real Estate Agent with Intero Real Estate Services, San Jose, Silicon Valley 01505493
https://activerain.com/droplet/5c9r

 

National home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market.

As a seller, you will likely be 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, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Reporthome prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

 

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

 

 

How long does it take a home to sell? In California, less than 30 days, and even
less here in Silicon Valley.

 

For quick market snapshots on Silicon Valley neighborhoods, check out my
Market Snapshot Videos.

 

 

Posted by

Lisa Wiseman

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