03/23/2022
Let’s play a game! 🖤
True or False: The current rise in home prices effects your monthly payment more than the interest rate…
❌ FALSE ❌
The concern I’m hearing from almost EVERY buyer I’m working with right now is that they think home prices are too high + they want to wait until they go back down again. I hear you! There is definitely a significant difference than this time 2 years ago. But I have two responses to this concern:
➡️Home prices are not projected to go down any time soon due to simple supply + demand rules. The demand is currently much higher than available supply which is causing home prices to rise along with the cost of inflation.
➡️ More importantly, even if home prices do level out or even lower, interest rates typically rise when prices fall. The rise of interest rates will affect your monthly payment more than a slight raise in list price.
Let’s run some numbers on two 30-year mortgage scenarios:
Buy Now:
List price- $300,000
Interest Rate- 3.25%
Down Payment- $60,000
Monthly Payment- $1,044 x 360 months
Total Cost- $375,842
Buy Later:
List Price- $289,000
Interest Rate- 5%
Down Payment- $57,800
Monthly Payment- $1,242 x 360 Months
Total Cost- $447,120
All of this to say, the cost of waiting is real + could impact your buying power.
If you’re considering home ownership, building equity + generational wealth, click the link in my bio to schedule a complimentary 1:1 buyer consultation to discuss all of your options + goals ✨
(P.S. Thank you for the 🔥 mortgage info!)
Felicia Hernandez, REALTOR®
eXp Realty
📱520-878-7048
📧 [email protected]
💻 www.tucsonhomesbuyfelicia.com