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What If I Wait Until Next Year To Buy A Home

Dated: 06/20/2016

Views: 152

What If I Wait Until Next Year To Buy A Home?

What If I Wait Until Next Year To Buy A Home? | Simplifying The Market

As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us 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 borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen 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 Tablepredicts that 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 the mortgage payment of a home selling for approximately $250,000 today:

What If I Wait Until Next Year To Buy A Home? | Simplifying The Market

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Shelia Rejas

For almost a decade I have been serving the real estate community. I am member of the Mississippi Gulf Coast Association of REALTORS® and the National association of REALTORS®.I am a Military Reloca....

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