Thursday, June 19, 2014
Many of our buyer clients often have significant reasons to start their home purchase process.
But there are times when you may not be sure if now is just quite the right time to make a move.
Here are four great reasons why now might be the best opportunity to move & buy your next home now!
4 Reasons to Buy Your Home Now!
As always, please let me know if you have any questions or how I can best help you make that next move!
Thursday, June 5, 2014
I often hear from clients & friends alike that they plan or want to wait to make their next move until their current home is "worth more." What typically ends up happening is that the amount that these clients & friends want to make on their home is usually the same or similar amount that their dream home price increases.
In my reading, I thankfully came across this article that offers some additional insight on why waiting to make "more" might not always end up with the desired result. Take a look & let me know your thoughts!
"A recent study revealed that the number of existing home owners planning to buy a home this year is about to increase dramatically. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.
There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.
Assume they had a home worth $300,000 and were looking at a home for $450,000 (putting 10% down they would get a mortgage of $405,000). By waiting, their house appreciated by approximately 10% over the last year (based on the Case Shiller Pricing Index). Their home could now sell for $330,000. That would mean an additional $30,000 in equity assuming they didn’t incur any expenses in selling the home.
But, the $450,000 home would now be worth $495,000. Adding the original 10% down payment ($45,000) to the additional equity ($30,000), they would now have a $75,000 down payment. That would still need a mortgage of $425,000.
Here is a table showing what additional monthly cost would be incurred by waiting:
According to the Home Price Expectation Survey, home prices are projected to appreciate by approximately 6% over the next eighteen months. Interest rates are also expected to rise by as much as another full percentage point in that same time period according to FreddieMac. If your family plans to move-up to a nicer or bigger home, it may make sense to move now rather than later."
As always, please let me know if you have any questions or want to take advantage of still great rates coupled with great pricing!