Are You Waiting for Next Year to Buy a Home?

Dated: 12/11/2018

Views: 209

What If I Wait A Year to Buy a Home? | MyKCM

National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Reporthome prices will appreciate by 4.8% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

What If I Wait Until 2019 To Buy A Home? | MyKCM

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

Latest Blog Posts

Oahu Single-Family Home Sales Heat Up in July

After a relatively quiet start of summer, sales of single-family homes on Oahu jumped by double digits according to resales figures released today by the Honolulu Board of REALTORS®. The

Read More

Local Business Spotlight: Three Peaks Island Craft Beer & Gifts

One of the challenges with delivering quality craft beer from a draught tower is oxidation. Beer is a living beverage that changes over time. The exposure of beer to oxygen during the dispensing

Read More

Oahu Housing Median Prices Hold Steady in February

Oahu’s sales prices for single-family homes and condominiums experienced small increases in February according to resales figures released today by the Honolulu Board of REALTORS®. The

Read More

Pau Hana Daily Deals

Pau Hana Daily DealsHaving a stressful week? Check out these awesome daily deals on different pubs in Kailua and get that treat you deserve after a hard day's work.Maui BrewHappy Hour Schedule3:30

Read More