Why Waiting To Buy Might Not Make Sense

Why Waiting To Buy Might Not Make Sense

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Whether you are a first time or a move-up buyer, there are two factors that will impact the amount of house you can afford in your price range: home prices & mortgage rates.

Let’s look at what the experts are predicting over the next twelve months for these two areas:


Over 100 economists, real estate experts and investment & market strategists were recentlypolledas a part of the Home Price Expectation Survey. They were asked to project where home prices are headed. The average value appreciation projected over the next twelve-month period is approximately 4.4%.


In the latest Economic & Housing Market Outlook from Freddie Mac, they predict that the 30-year fixed mortgage rate will be 4.7% by this time next year. As of last week, the Freddie Mac rate was 3.69%.

Click:   http://www.freddiemac.com/finance/pdf/march_2015_public_outlook.pdf

What does this mean to you? 

Example;  If you are a first-time buyer currently looking at a home priced at $250,000, this is what it could cost you on a monthly basis if you wait until next year to buy:

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Example 2; If the home is priced at Today $550,000  with an %3.69 =  $2,528  (Your PI payment)

2016 2Q :    If the home is priced at $600,000 with an %4.7% = $3,111 (Your PI Payment)

$3,111 - $2,528 = $583.83  Difference in Monthly Payment

If you are a move-up buyer currently looking at a home priced at $500,000, this is what it could cost you on a monthly basis if you wait a year to buy:

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Bottom Line

With both home prices & interest rates projected to increase, waiting to buy could put a serious dent in your family’s wealth.   Contact me for further assistance.

Alessandra Imanabadi Headshot
Phone: 510-504-2528
Dated: April 2nd 2015
Views: 194
About Alessandra: Hi, this is Alessandra and I have been practicing Real Estate for over 14 years because I truly love...

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