Do You Know the Difference Between Cost & Price?
As a seller, you will be most concerned with the ‘short term price’ – where home values are headed over the next six months. As a buyer, you must be concerned not with price but instead with the ‘long term cost’ of the home.
Many economists have pointed to Brexit (Britain’s exit from the European Union) as a reason that interest rates will remain low for the next few months. But Trulia’s Chief Economist Ralph McLaughlin warns that this will not always be the case in a recent post:
“While the departure of the UK from the European Union has driven down the 10-year bond, and thus mortgage rates, we expect them to rebound later in the year as uncertainty over the economic consequences of the departure lifts.”
The Mortgage Bankers Association (MBA), the National Association of Realtors (NAR) and Freddie Mac all project that mortgage interest rates will increase by close to a full percentage point over the next twelve months.
According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.3% over the next 12 months.
What Does This Mean as a Buyer?
Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if home prices appreciate by the 5.3% predicted by CoreLogic over the next twelve months:
If you are one of the many homeowners who is unsure of whether to buy now or wait its OK. But there will be a cost associated with waiting..
Selling a home
Here are some reports on systems that we use to help a homeowner get up to 18% more when they sell with us:
or go to http://wesellhomesformore.com/ for more information on our selling process.
Curious about what your home is worth goto http://www.socalhomevaluenow.com/ and find out instantly. This will give you a rough estimate on what your home is worth. For an accurate home value contact me directly for a free home value assessment.
Buying a home
If you are looking to buy a home whether its your 1st or 20th its important to choose the right agent. This decision could cost your thousands of dollars! Go to www.why-buy-with-us.com and see how we can help you!