What If I Wait Until Next Year To Buy A Home?
One of our favorites publishers “KCM” recently wrote about this subject. We found the subject very important for the current Market in Fl. Nevertheless the numbers that are reflected in this article reflects the average trend across the country by Freddie Mac. If you would like numbers for your particular city like Weston, Fort Lauderdale, Key Biscayne or Coral Gables please don’t hesitate to contact us that we will be more than happy in sending you the report for that city of your interest.
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 Table predicts 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: