Justin Miller with Primary Residential Mortgage shared this great information with us. This is a great article from KCMBlog.com that demonstrates how important these low rates are if you have any current or past clients that are looking to move up into a bigger home anytime soon. I hope you find it informative.
A recent study revealed that the number of existing home owners planning to buy a home this year is about to increase dramatically. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.
There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.
Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 13.8% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $341,400. But, the $400,000 home would now be worth $455,200 (requiring a mortgage of $409,680).
Here is a table showing what additional monthly cost would be incurred by waiting:
Prices are projected to appreciate by over 4% and interest rates are also expected to rise by as much as another full percentage point. If your family plans to move-up to a nicer or bigger home this year, it may make sense to move now rather than later.
So If you friends or family are ready to make a move, give us a call to help you find that new home, hook you up with a great lender and make the transition as smooth and pleasurable as possible. Call the team that helped 50 families buy and sell their homes last year. Experience that serves you well!
Robyn and Claudio Petasne Real Estate Team 954-770-6850 www.ClaudioPetasne.com