Cost of Waiting for Buyers

WAITING TO BUY A HOME COULD COST YOU OVER $100,000!
(here are two reasons why)

POTENTIAL INCREASE IN HOME PRICES.

Home prices have risen by more than 15% in most markets during the past three years. This means that it will likely cost you:

$575,000 to buy a home you could have bought three years ago for $500,000
$1,150,000 for a home you could have bought three years ago for $1,000,000

While large annual increases in home prices are unlikely, a more reasonable scenario is that home prices may rise by 2% - 3% in the coming year. That's because the overall supply of homes is still lower than demand, despite what the national news headlines may be leading people to believe. If home prices only go up by 3% per year, you may lose another $15,000 - $30,000 for every year you wait, depending on your price range.

MORE COMPETITION IF INTEREST RATES COME DOWN.

According to Freddie Mac data, interest rates have been range-bound between 6% and 8% for the past two years. They are currently in the middle of that range. However, many buyers who are sitting on the fence may decide to jump back into the market if rates start to come down again. This means more competition for you, and possibly more upward pressure on house prices. Contact me so we can explore ways to avoid that scenario.

NUMBER OF THE WEEK

4.06%

THAT'S THE AVERAGE ANNUAL GROWTH IN HOUSE PRICES DURING THE PAST 20 YEARS.

Source: Momentifi