As a seller, you will be most concerned about ‘short term price’ – where
home values are headed over the next six months. As either a first-time or
repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the
home.
Let us explain.
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 CoreLogic’s
latest Home Price Index, prices are expected
to rise by 5.5% by this time next year. Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table
predicts that the 30-year fixed mortgage rate will appreciate to 4.5% in that same
time.
What Does This Mean to
a Buyer?
Here is a simple demonstration of what impact these projected
changes would have on the mortgage payment of a home selling for approximately
$250,000 today: 
Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
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