What’s the Cost of Waiting to Purchase Your Next Home?
It can be a challenge in the current real estate market as to deciding to buy a home or condo. But you have to ask yourself What’s the Cost of Waiting to Purchase Your Next Home?
Most experts say interest rates could climb higher in the coming months as the Federal Reserve works to get a handle on our current inflation. So maybe you are thinking prices will make a dramatic drop, or the interest rate will fall. The later can be true…as we saw a recent dip in interest rates from their high point of over 6%. But what if they go from 6 -6.5%? The example on the right shows the difference between 5.5% and 6.0% in the $300,000 price range. That initial $257 increase might be something your budget can handle. But look at the life of the loan, and how much more you would be paying. Kind of a yikes!
We are starting to see price decreases on homes currently listed, but don’t expect the “sky to fall” or the
“bottom to fall out” of the real estate market. There is still high demand and a limited amount of inventory currently in the market place. We ARE starting to see some additional inventory come to market, which is a good thing for any buyer that has been in the competitive buyer’s market of the past 18 month. And there are buyers that will be pushed out of the market place as they don’t have the budget or financial resources to handle the interest rates that have gone from 3% at the beginning of 2022 to the current rates.
Each buyer has their own specific situation…and we understand that. That’s why we are here to help you look at all the options, meet with one of our Team Lenders to help you look at your overall financial picture and buying power, and make the right decision for you. It might be to wait it out……and you might find that this is the right time for you….with equity building in that home or condo you purchase, you can look to refinance your purchase later when interest rates start to come back down.