Buying a House This Year? This Should Be Your 1st Step!In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale.
Patience Is A Virtue But Waiting Could Cost You THOUSANDS
With home values on the rise, many prospective buyers are choosing to wait in hopes that the values will come back down in the not-so-distant future. The question then becomes, how long until home values drop? FreddieMac projects home values to steadily increase until at least 2020. Home values will likely slow but will continue to increase.
We likely won’t continue to see 11% year over year increases as we did in 2017. More likely, we will settle into a 3% - 5% year over year increase. Since 2014, the median home value in Ottawa County has seen a 40.19% jump from $158,000 in 2014 to $221,500 in 2018.
The home values are no longer all that is increasing for home buyers. Interest rates are as well. At the start of 2018 rates were around 4.0% for a 30 year fixed mortgage. Now at the end of 2018 rates have climbed to around 5.0% for a 30 year fixed. That means that if home values increase 5% in 2019 and you were to purchase a median-priced home in December 2019 and figure at least a 5.5% interest rate you can expect to pay an additional $38,000 over the life of the home. An extra $38,000 for the same house just because you waited a year?! That’s crazy, right?
The take away here is that if you’re thinking of buying anytime in the near future, now is the time. Things will only get more expensive. And if you buy now, you could have an additional 5% of home equity in a year.
It seems like a no-brainer. If you’re ready to invest in your future give me a call today. (616) 335-0939
Gavin Steenwyk is an experienced realtor along the West Michigan Lakeshore. It is his highest priority to represent your best interest with honesty and integrity. He understands how stressful and over....
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Some Highlights:Interest rates are projected to increase steadily throughout 2019, but buyers will still be able to lock in a rate lower than their parents or grandparents did when they bought
One of the most common loans you can get to buy a home is a 30-year fixed rate mortgage. If the thought of paying for your home over the course of 30-years seems daunting, here