By Nancy Puder

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 only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.  What will happen over the next 12 months?

According to CoreLogic’s latest Home Price Index, prices are expected to rise by 5.5% by this time next year.  Additionally, Freddie Mac’s most recent Economic Commentary & Projections Tablepredicts that the 30-year fixed mortgage rate will appreciate to 4.5% in that same time.  What Does This Mean to a Buyer?

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:

Nancy Puder is a real estate broker with Nancy Puder & Associates, the premier real estate boutique company in Arroyo Grande, CA. Nancy Puder is one of the largest listing brokers on the Central Coast. Call or Text Nancy (805)710-2415 with your real estate questions anytime. She always enjoys hearing from you!  To access other articles written by Nancy Puder, go to www.nancypuderassociates.com.  Readers can also email [email protected] with questions or to discuss their real estate needs.