Real Estate 2014 - A Home’s Cost vs. Price Explained

Real Estate 2014 - A Home's Cost vs. Price Explained 

In real estate there is a difference between COST and PRICE.

As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months.

As a buyer, you must not be concerned about price but instead about the ‘long term cost’ of the home.

Recently, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists projected that home values would appreciate by approximately 8% from now to the end of 2015.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30 year fixed mortgage rate will be 5.7% by the end of next year.

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:

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Jim Starwalt

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Jim Starwalt, Real Estate Broker
RE/MAX Center
Phone: 847-548-2625
Jim@StarHomeTeam.com

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Real Estate 2014 - A Home’s Cost vs. Price Explained