Two Reasons Why Waiting To Buy a Home Will Cost You

Two Reasons Why Waiting To Buy a Home Will Cost You

Home prices are likely to increase in the future, so buying now could be a good idea if you plan on getting into your dream house. It’s also important that mortgage rates stay low because homeowners tend not want too many more mortgages outstanding at any given time which means they need fewer homes being built or sold each year than would otherwise occur without this effect happening again!

Where Will Home Prices Be a Year from Now?

Three major housing industry entities are projecting ongoing home price appreciation in 2022. Here are their forecasts:

According to the National Association of Realtors (NAR), the median price of a home today is $353,900. Using an average of the three price projections above (6.5%), a home that sold for $353,900 today would be valued at $376,904 at the end of next year. As a prospective buyer, you would therefore pay an additional $23,004 by waiting.

Where Will Mortgage Rates Be a Year from Now?

The experts are all predicting that mortgage rates will go up in the near future. With this news, it's important to keep an eye on your finances and ensure you're not getting blindsided by any increases!

What Does It Mean for You if Home Values and

Mortgage Rates Increase?

That was easy! If you increase both variables in this equation, then the amount of money that will be left over at month end is much greater than before. For example if we compare what would happen with an annual percentage rate (APR) on a 30-year fixed mortgage from 3%, currently available through Freddie Mac today and assume 10% down payment; our monthly homeownership costs could potentially skyrocket by $ Uncertainty around these estimates makes it difficult to nail down exact numbers but let's say they average out around $1K per year - which isn't too bad considering all those other bills we have anyway like insurance & taxes...

The future is bright for those who invest in their homes.Your investment could be worth up $376,904 after just one year! And with rates at 3%. Your monthly mortgage payment will only come out around 1/5 of what it used too - that's enough cash every month just storing away into equity."

To make this year even sweeter, you could buy a house! The difference in your monthly mortgage payment would be $201. That’s enough to cover the cost of an expensive meal or two at that new restaurant down town and leaves plenty left over for never-ending nights on Netflix with all those extra dollars rolling around inside cashmere socks. Add that up: about 5 months worth (just think how great they'll look paired with tailored pants), annualized savings upwards from 72k plus 23k possible equity gain if buying now--not too shabby when it comes right down to the math...

Bottom Line

When buying a home, you may think about the many non-financial benefits. But when should we buy? The answer might be more straightforward: right this second and not next year!

Lamont "Ben" Orr - The Orr Team eXp Realty 720-425-3365

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