Difference Between Home Costs & Home Prices
As a seller, you should be concerned about ‘short term price’ – where home values are headed over the next six months. As a buyer, you must not only be concerned about your purchase price, but also (and maybe even more so) about the ‘long term cost’ of your new home.
The Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), Fannie Mae and Freddie Mac all project mortgage interest rates will increase by about .750% over the next twelve months.
CoreLogic’s most recent Home Price Index Report, projects home prices will appreciate by 5.2% over the next 12 months.
What Does This Mean to YOU as a Buyer?
Here is a simple illustration of the impact an interest rate increase would have on the mortgage payment of a home that sells for $250,000 today if home prices appreciate by 5.2% predicted by CoreLogic over the next twelve months:
As a buyer, the cost of waiting can be an expensive one. Don’t get priced out of the real estate market. Let’s discuss your situation to see if now if the right time for you to buy.