Waiting to Buy or Sell Will Cost YOU
Christopher Pollock
![Christopher Pollock]()
Christopher Pollock
Mental Health Care Director Associate Family Therapist AMFT MFTC
Friends and clients,
If you’ve been thinking of selling your SAN DIEGO home, you’re likely keeping an eye on home prices, specifically short term prices. If you’re going to be buying as well, you need to also focus on the long-term cost of the home when factoring in your decision to wait or not.
There are many things that add up to the “cost” of a home.The two most important factors here are the home’s appreciation over time and the interest rate at which a buyer can borrow the funds necessary. The rate at which these two factors can change is often referred to as “The Cost of Waiting.”
I recently found a great article that illustrates the cost of waiting, from our good friends over at Keeping Current Matters. You can read the entire thing here, but I’ll give you the information you need to know now.
According to the latest Home Price Index, home prices are expected to rise by 5.5% nationally over the next year. Additionally, Freddie Mac has predicted that 30-year fixed mortgage rates will rise to 4.5% during that same timeframe.
The impact of these projected changes could be huge. A home that is on the market right now for $250,000 can be had with a 3.68% interest rate, making your monthly mortgage payment $1,147.88. If you were to wait a year and watch these projected changes take hold, that same home would cost you $263,750, and with a 4.5% interest rate, would cost you $1,336.38 per month.
Now, a $188.50 difference might not seem like a lot, but it sure adds up over time. Over a 30-year loan period, you would wind up paying $2,262 extra per year, and $67,860 extra over the life of the loan. When you see things from this perspective, making a move now in Portland seems like an easier decision to make.
If you're thinking of buying or selling a home visit us at www.CaliforniaSD.com
We will give you a free market evaluation to let you know how much your home will sell for and how much you can afford.
Christopher Pollock [email protected] 619-363-1234