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2018-05-07 09:24:01
What Does Time Cost You?

Sometimes waiting is best and patience pays off, but that is not the case today. I am not an advocate of pushy salespeople or closing techniques, in fact, I walk away when I feel someone is putting the pressure on me so let's have the facts talk instead of me. Based on market sales facts Utah is definitely in the top 10 markets in the nation, we are seeing 6-7% home value appreciation on a State Average (yes some areas are seeing more), and finally interest rates are on the rise. If you own a home and want to make a change to move up, down or out it is a great time as your home will be selling at top dollar if you are looking to buy your first home now is better than a future date as homes will continue to increase in cost and the cost to borrow for a home loan is increasing as well.

What If I Wait Until Next Year to Buy a Home? | Simplifying The Market

What If I Wait Until Next Year to Buy a Home?

We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Reporthome prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate 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

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

 
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