As a seller, you will be most concerned about "SHORT TERM PRICE" where home values are headed over the next six months. As wither a first-time or repeat buyer, you must not be concerned only about price but also about "long term cost" of the home.
There are many factors that influence the "cost" of a home. Two of the major ones are the home's appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as "The Cost of Waiting".
What will happen over the next 12 months?
According to the latest Home Price Index prices are expected to raise by 5.5% by this time next yeat.
Additionally Freddie Mac's most recent Economic Projection Table predicts that the 30 year fixed mortgage rate will appreciate to 4/5% in that same time.
What does that mean to a Buyer?
Here is a simple demonstration of what impact these projected changes would have on a mortgage payment of a home selling for $250,000 today:
THE KCM CREW
Author:Salvatore Defrisco Phone: 561-644-0052 Dated: March 14th 2016 Views: 223 About Salvatore: ...
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