On his personal website, self-made millionaire David Bach makes a striking statement: “Not prioritizing homeownership is the single biggest mistake millennials are making.”
The Real Difference Between A Homes Cost Vs Price
When selling a home you are most interested in the short term PRICE of your home. Where are home prices heading in the next 3 to 6 months and how does your home compete? When buying a home here in the South Bay, you are not only concerned about PRICE, but also the long term COST of the home.
Let me explain.
Two major factors of COST of buying a home are the INTEREST RATE on the mortgage you’ll get to purchase a home and the APPRECIATION in home values while you’re in the process. The rate at which these two factors can change is often called “The Cost of Waiting”
What Will Happen in 2015?
Most economist predict home prices will continue to increase at a conservative 4% rate in 2015. In addition, Freddie Mac predicts the 30-year fixed mortgage rate will rise to 4.5% by the end of 2015.
What does this mean to potential buyers?
If we take an average home sales price on $500,000 in today’s dollars and look at where we’ll be in 12 months, the COST of WAITING is steep.
Lee Williams brings 18 years of solid mortgage banking, investing and real estate expertise to Keller Williams Realty and our clients. Throughout his award-winning real estate career, Lee has gained a....
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