Many people are waiting for foreclosures or short sales before they buy a home. Take a look at these stats and let me know your thoughts…if you are on the fence, especially…
A big concern when you buy a house is, "Will I lose money?"
Here is what 111 of the leading experts in the country believe is going to happen with prices. They mash all of their opinions together, what they think is going to happen over the next five years, into one number, and they graph that number.
So we can see that through the rest of 2011 they expect prices to drop (the red) but from 2012 moving forward, they expect prices to steadily increase. And cumulatively, from the beginning of 2011 all the way through the end of 2015, prices will go up almost 10 percent.
So if you are worried about future equity- as long as you are going to stay in a house longer than, really, 2-3 yrs, you are going to be building equity in the house. What happened in the last six years is not going to happen in the next six years.
They are steadily climbing. Locally, just a couple months ago they were at 4.25. Yesterday, at a closing, clients with excellent credit had an interest rate of 4.75.
We hit a low in November of 2010. Since then they have been steadily increasing. So, with interest rates rising, that increases payments. Sometimes significantly.
So if you're buying a $300,000 house, triple that number.
This is what the additional cost is monthly at a hundred thousand dollars, yearly and over 30 years. If you are buying a $300,000 house, you have to take that $14,770.80 and multiply it by three. That's how much you'd be losing by waiting.
Statements by John Paulson & Donald Trump:
Send me your thoughts & opinions. I would love to hear from you.
Working side by side with my mom, Pam Toth who has 28+ years experience.
Suzi Toth Noyes
Pam Toth, ABR, CRS, GRI
William E. Wood and Associates
Licensed in VA