Is it a good time to buy or to sell a home????

I hope your New Year is off to a good start.  With rising home values and low inventory – Is it a good time to sell your house?  Well, my last listing went for $19,000 above asking price and everyone knows that the answer is absolutely!!   Here is a bit of insight as to why it is also a good time to purchase a house.  I am no mortgage specialist, so if you have detailed questions about the information below, I can point you in the right direction.  This is simply food for thought…

Let’s say that today you bought a home for $350,000 at 2.5%.  Over the life of a 30-year loan, you would end up paying about $147,000 in interest.  This brings the real price of the home to $497,000

Now, let’s say that another family decides to wait until home prices go down to buy – Totally understandable.  In a year, they hear home prices are dropping, so they begin looking.  In fact, an exact replica of the home you just bought a block over from you is now on the market for $315,000 only a year and a half later.  Wow!  The interest rates have gone up a bit and are now at 5.5%.  Over the life of a 30-year loan, they would end up paying about $328,000 in interest.  This brings the real price of the home to $643,000.

Was it worth waiting for home prices to go down?   Not unless you have $146,000 to throw out the window.  No one knows when rates will rise or home prices will go down, but we all know that rates are currently at historic lows.

Call me if you have any real estate needs or questions.  312-545-8428