The Difference Between A Home’s Cost versus Price in 2015
The Difference Between A Home’s Cost versus Price in 2015
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 only about price but also about the ‘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 in 2015?
A nationwide panel of over one hundred economists, real estate experts and investment and market strategists project that home values will appreciate by almost 4% by the end of 2015.
Additionally, Freddie Mac’s most recent Economic Commentary and Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.5% by the end of 2015.
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:
Click here to search Lake County and McHenry County Homes for Sale.
Jim Starwalt
Thinking of making a move?
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
The Difference Between A Home’s Cost versus Price in 2015
As a buyer, you must not be concerned only about price but also about the ‘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 in 2015?
A nationwide panel of over one hundred economists, real estate experts and investment and market strategists project that home values will appreciate by almost 4% by the end of 2015.
Additionally, Freddie Mac’s most recent Economic Commentary and Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.5% by the end of 2015.
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:
Click here to search Lake County and McHenry County Homes for Sale.
Jim Starwalt
Thinking of making a move?
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
The Difference Between A Home’s Cost versus Price in 2015
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