Homes are continuing to appreciate and waiting until next year can cost you more!
Updated: Aug 17, 2021
Many of my clients, friends, and family continue to ask me, "What do you see happening to home values over the next year?" 🤔
Staying on top of the market and being knowledgeable in the industry allows me to inform and educate those around me.
However, instead of just stating my opinion, I decided to dig a little bit deeper and type up a quick article backing up my projection up with research and some good hard data. Projections aren't always pinpoint accurate but whether or not homes appreciate by 5️⃣%, 7️⃣%, or 1️⃣0️⃣%, they are without a doubt expected to CONTINUOUSLY RISE. The main
reason is the concept behind high demand & low supply, this will always drive up prices! A perfect example of this is Gas Prices right now ⛽😭
READ ARTICLE BELOW!
There are thousands of people who are on the fence about whether they should buy a home right now. Thousands more who are currently renting are also trying to decide if now’s a great time to become homeowners. Others are realizing that their current home no longer
fits their changing needs. Whatever the reason may be, if buying is something you’re considering this year, you’re going to want to read this!
I think for those trying to determine whether to buy now or wait another year should consider how much higher home values are forecasted to increase a year from now. Let me break this down and put this into perspective.
So, where will home prices be a year from now? If you average the most recent projections from the major industry forecasters, the expectation is home prices will increase by 7.7%. Let’s take a house that’s valued today at $500,000 as an example.
If the buyer makes a 10% down payment ($50,000), they’ll end up borrowing $450,000 for their mortgage. Applying the projected rate of home price appreciation, that same house will cost $538,500 next year. With a 10% down payment ($53,850), they’d then have to borrow $484,650
Therefore, as a result of rising home prices alone, a prospective buyer will have to put down an additional $3,850 and borrow an additional $34,650 just for waiting a year to make their move.
To sum things up, when asking if you should buy a home, many potential buyers think of the nonfinancial benefits of owning a home. When asking when to buy, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.
One thing is for sure, home values will continue to appreciate into 2022 and that folks, is a simple fact. You may want to consider purchasing sooner rather than later. Lets connect to discuss your real estate goals and how I can help you achieve them!