The True Cost of Waiting To Purchase a Home
The true cost of waiting for interest rates to drop before buying a home.
Today, I’m going to talk to you about the hottest topic in real estate: interest rates. Many people don’t want to purchase a home because they think it’s too expensive; however, due to interest rates and home prices, the cost of waiting might be higher than you think.
For example, if you look at the graph in the video at 0:24, you’ll see that home prices have been appreciating in Colorado by around 5% on average every year. This means that even at a conservative estimate of appreciation, home prices will be much higher in a few years. Meanwhile, rates will likely decrease over that period, but not a crazy amount. This means that if appreciation holds steady and rates decrease to around 5% in three years, your monthly payment will actually be about the same as if you purchased it today.
Saying it that way, it sounds like it doesn’t matter if you wait or buy now. However, waiting also causes you to lose all your potential equity. For example, in the graph at 2:30 in the video, you’ll see that the cost of waiting just six months could be as high as $12,148 when you keep appreciation in mind. Meanwhile, waiting three years for rates to fall could cost as much as $91,490!
"Waiting to buy could cost you a lot of money in the long run."
To learn more about this topic, click here to download the graph. There’s no guarantee that rates and home prices will follow the exact trajectory of this graph, but this looks like the most likely scenario based on what we know now. If anything, tons of buyers will flood the market when rates decrease, which could cause prices to shoot up again at a rapid pace.
If you have questions about the true cost of waiting to buy a home or anything else, please call or email me. Are you ready to sell your home for top dollar in the shortest amount of time with the least amount of hassle? Our top-notch selling strategy, The Kittle Home Selling System, will help you sell your home for the maximum amount of profit, the easy way! Click here to get started today! I am always willing to help!