What if you wait to buy your Haymarket or Gainesville Home?
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
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. If you wait to buy your Haymarket or Gainesville home you can see the negative impact demonstrated in the chart below.
The Bottom Line.
While no one can say for sure when and how much interest rates will rise or how fast homes will appreciate, you can be assured it will happen. So I think the answer to the question “Should You Wait To Buy Your Haymarket or Gainesville Home?” is no. Now is the time to buy while interest rates remain low and before home appreciation pushes your dream home out of reach. Contact us with any questions about buying or selling your home.