What If I Wait Until Next Year To Buy A 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.

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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:

If the interest rates rising doesn't cause you any concern, then the rising cost of homes should.  This information above is only if the interest rates change, home prices are going up in most places in the world, especially here in Fort Lauderdale.  While you may afford a $250,000 home today you may not afford one when the interest rates go up and will most likely have to choose another neighborhood to move into than you desire.

Contact Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group today!  Hiring a Real Estate agent to buy a home doesn't cost you, the seller pays for the buyers agent.  Call or Text 954.998.3043 today!