Skip to main content

2014 Home Buying - Moving Up to a Bigger Home

2014 Home Buying - Moving Up to a Bigger Home

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.

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 $450,000 (putting 10% down they would get a mortgage of $405,000).

By waiting, their house appreciated by approximately 10% over the last year (based on the Case Shiller Pricing Index).

Their home could now sell for $330,000.

That would mean an additional $30,000 in equity assuming they didn’t incur any expenses in selling the home.

But, the $450,000 home would now be worth $495,000.

Adding the original 10% down payment ($45,000) to the additional equity ($30,000), they would now have a $75,000 down payment.

That would still need a mortgage of $425,000.

Here is a table showing what additional monthly cost would be incurred by waiting:

Moving Up? Do It Now | The KCM Crew

According to the Home Price Expectation Survey, home prices are projected to appreciate by approximately 6% over the next eighteen months.

Interest rates are also expected to rise by as much as another full percentage point in that same time period according to FreddieMac.

If your family plans to move-up to a nicer or bigger home, it may make sense to move now rather than later.

Click here to search Homes for Sale.

Jim Starwalt

Thinking of making a move?

Download the New Free RE/MAX Home Search App or text the word MOBILE to 224-677-2200.

Log onto my website at www.StarHomeTeam.com and search Northern Illinois Homes for sale.

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

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

Find Me Online

      

2014 Home Buying - Moving Up to a Bigger Home

Comments

Popular posts from this blog

Waterfront Location on Gages Lake: Grayslake Ranch Home for Sale

Waterfront Location on Gages Lake: Grayslake Ranch Home for Sale

33440 N Lake Shore Dr, Grayslake IL 60030




Click here to search Grayslake Homes for Sale.

Jim Starwalt

Thinking of making a move?

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

Jim Starwalt, Broker Owner
Better Homes and Gardens Real Estate Star Homes
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online




Waterfront Location on Gages Lake: Grayslake Ranch Home for Sale

Choose Better Homes and Gardens Real Estate Grayslake Agents For all Your Real Estate Needs

Choose Better Homes and Gardens Real Estate Grayslake Agents For all Your Real Estate Needs

Choosing the right real estate agent, when buying or selling your Grayslake home, is paramount to your success.

The benefits of choosing a company with national recognition and a proven strategy will save you time and money.

Contact our office today at 847-548-2625!



Click here to search Grayslake Homes for Sale.

Jim Starwalt

Thinking of making a move?

Easily search Northern Illinois Homes for Sale with photos, open houses and virtual tours at StarHomeTeam.com

Jim Starwalt, Broker Owner
Better Homes and Gardens Real Estate Star Homes
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online





Choose Better Homes and Gardens Real Estate Grayslake Agents For all Your Real Estate Needs

Sell Your Grayslake Home with Better Homes and Gardens Real Estate

Sell Your Grayslake Home with Better Homes and Gardens Real Estate

Thinking about selling your home?

You don't have to do it alone.

Let Better Homes and Gardens Real Estate Star Homes lend a hand - with tools, information, and an agent you can trust.

With intimate knowledge of your area and the expertise necessary to give you a detailed assessment, our Better Homes and Gardens Real Estate Star Homes agent can help you set the right price and put together a comprehensive marketing plan.

Your Better Homes and Gardens Real Estate Star Homes agent will be there to guide you through every step of the listing process.

Ready to take the first step? Call our office now at 847-548-2625!



Jim Starwalt, Broker Owner
Better Homes and Gardens Real Estate Star Homes
Phone: 847-548-2625
Jim@StarHomeTeam.com

Find Me Online