A Home’s Cost vs. Price Explained
We have often talked about the difference between COST and PRICE. As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned about price but instead about the ‘long term cost’ of the home.
Let us explain.
Recently, we reported that a nationwide panel of over one hundred economists, real estate experts and investment & market strategists projected that home values would appreciate by approximately 4% from now to the end of 2015. Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30 year fixed mortgage rate will be 5.0% by the end of next year.
Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today: Looking for more information about your market? Contact us today! Our team of experienced agents are here to answer your questions and make sure you know how to buy SMART in today’s market. Contact us today! office 800.214.1245 email firstname.lastname@example.org We’re never too busy for your referrals!Source Credit: Keeping Current Matters Photo credit: http://www.keepingcurrentmatters.com/wp-content/uploads/2014/10/Slide12.jpg