Should I buy a house now? Or wait until (who knows what happens)?
So if you look back to the end of 2012, I wrote a similar article that was titled “ The Cost of Waiting” Throughout 2013 I was often seen preaching a message from Steve Harney from Keeping Current Matters, The difference between the “PRICE” and the “COST” of a home. We explained that a purchaser should not only be aware of rising home values but should also look at what was about to happen to mortgage interest rates.
Looking back, we can now establish exactly what it cost a buyer who waited to buy a home instead of buying at the end of 2012.
November 2012, according to the National Association of Realtors, the nationwide average price of a house was $227,900. The average interest rate according to Freddie Mac was 3.32% which would give you a principal and interest payment of $1000.61
Compare that to just one year later, November 2013, the average sales price was $244,500, with an interest rate at 4.29% cited from the same sources. With a total Principal and Interest payment of $1,208.53 you now have a difference of $207.92
Waiting resulted in an increase of over $200 a month…. Or you could say almost $2,500.00 more per year… OR nearly $75,000 over the life of a 30 year loan….
So you may be saying, oh well, I must have just missed it… I will wait until the rates come down. I urge you to look at the strong possibility of what’s trending and where you might find yourself at the end of this year……. Assuming a 4% appreciation in existing home prices, projected by the latest Home Price Expectation survey. The average house price in America in November 2014 could be $254,280. And based on a projection from the Mortgage Bankers Association, interest rates could be near 5.5%. Your principal and interest could be as high as $1,420.00 a month or $212.00 a month higher compared if you bought right now…
The past leaves clues and if you follow the right advice, you could find yourself hitting the market in the sweet spot. Don’t wait until it’s too late and your kicking yourself at the end of 2014…. Get some solid advice from the best local real estate agent team in Eastern Pennsylvania. Call Jeffrey Hogue of Weichert Realtors, He can help you find the house and my team can help you buy the house. You can contact Jeffery Hogue at 610-670-6566 and for a no obligation mortgage approval you can contact Scott Hillegass of The Michael Mann Team at Fairway Independent Mortgage at 484-224-2985 or 610-737-1189
Home prices used in this article are the nationwide average prices of homes. For the average price in your area contact Jeff Hogue directly. Home prices and rates are subject to change at any time. Information contained in this article is not intended as financial advice. You should seek a private and personal consultation with your Real Estate agent and mortgage professional before making any final decisions.