Buy now or pay the price later!
Do you know what the costs of waiting to buy are?
You can borrow money for cheaper than ever. Currently, interest rates are below 4%. The Fed has raised rates by a quarter percentage point four times since late 2015. Another increase is expected in December, three times in 2018 and two in 2019 and one more in 2020. Mortgage interest rates will gradually increase as well making the affordability of homes more challenging.
As an example, when interest rates rise just 1% from where they are today, a $500,000 mortgage will cost an additional $297 per month, or $3,564 per year. For a $750,000 mortgage, a buyer is looking at paying an additional $445 per month, or $5,340 per year. This is equivalent to paying 10% higher in a sales price. Ouch!
Also, keep in mind that Low housing inventory has been an issue for the past 5 years and the trend was reinforced in 2017 with 7% fewer homes on the market. This is not forecasted to change…. Yet our team has been able to find great opportunities for our Buyer clients. This also means it’s a good time to sell as you have less competition. Don’t miss out and later wish you should have, could have, would have…..
For additional information on the current housing market, see articles below:
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