Here’s why it’s not a great idea to wait until next year to buy a home.
Do you think waiting until next year to buy a home is smart? Today, I’m discussing why that will cost you a slew of money.
You’ve likely been told the housing market is overpriced or crazy right now. However, according to Freddie Mac’s home price appreciation and mortgage rate projections, the cost of waiting from January 2021 to January 2022 means paying roughly $30,250 more. That’s a 12.1% appreciation increase, and the mortgage rate rise means your monthly mortgage payment (which includes principal and interest) would grow from $1,027 to $1,243. Not only did you lose out on $30,250 in equity, but that same house will cost you an additional $216 more per month. The expected annual home appreciation projection is about 5.3% for 2022, meaning if you wait to buy a home, you’d be paying even more for the same house—close to $45,000 more and almost $345 more per month in your mortgage payment.
“Median rental prices have reached their highest point ever recorded. ”
If that doesn’t make you want to take action, consider this: Realtor.com just released data that shows the median rental prices have reached their highest point ever recorded. So, if you’re currently renting and think you’d be better off staying where you are instead of buying, they found that rents climbed by 8.1% within the last year, which is more than most housing appreciation. Usually, we see rents fluctuating less than 1% from month to month, so if you’re renting and are concerned about home prices, I highly suggest taking a deeper look into buying.
The majority of people are more concerned with what they’ll pay each month rather than the entire sales price. If you’re worried about how much you’ll pay each month on your mortgage, according to the National Association of Realtors, monthly mortgage payments are trending upward, but they’re still significantly lower than a typical rental payment.
If you’re ready to talk about how we can help get you on the path to homeownership, or if you own a home but want to know how much you could sell for, all you need to do is call us or visit our website. I strive to become your go-to real estate expert, so let me know how I can help.
