Learn more about the real cost of waiting to buy a home
By Jason Boone
When it comes to buying a home it’s easy for many people to wait on buying a home for another 6 months to 1 year.
Why? Most buyers feel they aren’t ready for the commitment but what’s the real cost which comes with waiting to buy a home in Bend?
In today’s post I will break down the cost so you will be better prepared if you’re thinking about buying a home but feel it might be better for you to wait another year and continue renting compared to buying now.
The Real Cost
Did you know buying a home may be out of your financial reach one year from now?
According to recent statistics from Zillow the cost of purchasing a home in Bend Oregon or elsewhere across the country may be prohibitive for many buyers one year from now because, mortgage interest rates are expected to increase by 1 percent and home prices are expected to appreciate as well.
When we break down the cost of waiting in dollars a 1 percent increase in mortgage interest rates could mean you will be paying at least $200 or more per month for your mortgage payment.
Understanding Percentage Points
In a recent interview Erin Lantz, Zillow’s Vice President of mortgages said: “More often than not, buyers do not understand the profound effect of rising interest rates on affordability, Many buyers associate a 1 percentage point interest rate change with a 1 percent change on a piece of clothing or the price of a car, when in fact they are very different”.
What does this mean for you, the home buyer? A 1 percentage point increase means home affordability will be reduced by at least 10 percent so it’s best to move forward and buy a home in 2014 rather than wait for another year and pay more for your mortgage.
To learn more about how waiting on buying a home in Bend affects you, or to view the latest homes listed for sale in the area contact me, Jason Boone, Principal Broker at Duke Warner Realty | Skjersaa Group by calling me at (541) 383-1426 or by emailing me at: Jason@sgbend.com.