What will it cost you to wait?

28 08 2013

The KCM Blog – The COST of a Home:

Last Year, This Year & Next Year


Same Price, Lesser CostThe cost of a home is determined mainly by two components: price and mortgage rate. Today, we want to show how the monthly cost of purchasing a median priced home has changed over the last twelve months and how it might change over the next twelve months. For the first two examples, we will be using theNational Association of Realtors’ (NAR) Existing Home Sales Report to establish median price and Freddie Mac’s Primary Mortgage Market Survey to establish mortgage rate. We also assumed a 20% down payment in all examples.

LAST YEAR

The median priced home in the country was selling for $187,800. The 30-year fixed mortgage rate was at 3.5%. Here is what it would cost to buy a home last year:

Last Year

TODAY

The median priced home in the country is selling for $213,500. The 30-year fixed mortgage rate is at 4.5%. Here is what it would cost a purchaser to buy a home today:

This Year

The monthly cost increased by: $190.78!

NEXT YEAR

Projecting into the future in real estate can be rather tricky. To establish future pricing, we depended on the over 100 housing experts surveyed for the Home Price Expectation Survey who called for an approximate appreciation rate of 5% over the next twelve months. For the interest rate, we took the average of the projections from the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae. Here is what these experts project will be the approximate cost of a home a year from now:

Next Year

The monthly cost will increase by about: $97.32!

Bottom Line

From a financial perspective, why wait if you are thinking about buying?

Source:KCM Blog





National Numbers are good too

23 08 2013

NAR 8.2013





Top Ten Reasons People are Coming Here

21 08 2013
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News06032013-1.jpg 10 reasons why so many people are moving to Texas

BBC – Five of the 10 fastest-growing cities in the country between 2011 and 2012 were in Texas, according to new figures from the US Census Bureau. New York is way out in front in terms of added population, but Houston is second with San Antonio and Austin fourth and fifth. Read more>>>