Is It Worth the Wait?
As a seller, you are most concerned about ‘short term price’ – where home values are headed over the next six months. As a first-time or repeat buyer, you should not only be concerned about price, but also about the ‘long term cost’ of the home.
Let me explain.
There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can get a mortgage. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.
What will happen to the real estate market over the next 12 months?
According to CoreLogic’s latest Home Price Index, prices are expected to rise by 5.5% by this time next year.
Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts the 30-year fixed mortgage rate will appreciate to 4.5% in that same time.
What Does This Mean to a Buyer?
Here is a simple demonstration of what impact these projected changes would have on a $250,000 mortgage –
Real Estate Bottom Line
Let’s discuss your real estate needs so you can decide if now is the right time for you to buy.