Have You Said.....'I'm Just Going To Wait For The Market To Cool Down'?
Have You Said....."I'm Just Going To Wait For The Market To Cool Down"?
PLEASE READ BEFORE IT'S TOO LATE
We talk with buyers and sellers daily. For those who are waiting the resounding reason, on the front end, is a good one. The market is just too crazy and I'm going to wait until prices (and the market) cool down.
Please take a long hard look at the numbers below and decide for yourself if the short term market pain of today is worth the long term extended pain for a long future.
Market Price Projection - Over the next four years home prices are projected to RISE. This was projected before the huge increase in inflation. So these numberes will likely be adjusted soon to account for a more steady appreciation. Currently home prices are projected to go 35% in the next five years! WOW!
Let's just say home prices stay steady and do not appreciate. The next factor is a dagger right in the middle of the heart of the 'I'm going to wait' strategy.
Interest Rates - in the past 90 days mortgage interest rates have increase 1.25%. Let's put some match to this for perspective because the FED has made it crystal clear that these increases are just beginning. Projections are 9 increases over the next year. (NINE MORTGAGE INCREASES OVER THE NEXT YEAR) ----- Click for Mortgage Calculator
$400,000 MORTGAGE - INTEREST rate 3.25% (est tax at $3k and ins at $1k) - Monthly payment) $2074.15
$400,000 Mortgage - Interest rate 4.50% (est tax at $3k and ins at $1k) - Monthly payment) $2360.07
total difference = $102,931.20
Let's go further - since the FED is clearly projecting forward multiple mortgage rate increases let's run it at 6% and even 7%
$400,000 Mortgage - Interest rate 6% (est tax at $3k and ins at $1k) - Monthly payment) $2731.53
total difference = $236,656.80
$400,000 Mortgage - Interest rate 7% (est tax at $3k and ins at $1k) - Monthly payment) $2994.54
total difference = $331,340.40
****If we are planning to wait for the market to drop the home price would almost have to be FREE to make sense in waiting. Paying $50,000 over the market price is considerably cheaper than paying a higher interest rate. ***
Please consider your options wisely. The market of 2007-2011 is going to look considerably different than the market of today. It's going to be years before a correction....and all along the interest rates are projected to increase.
Your gut tells you the market is crazy therefore don't participate. You want/need to move in the next couple years. If you wait you will pay an additional $200,000 to $300,000 on your house in interest payments.
Take a step forward. Participate today and alleviate a long term 30 year mortgage pain! Call us today to discuss your best options - 678.647.6441