Chances are if you keep up with the real estate market at all, you have heard that the market is currently performing well and what a great time it is to sell your home. This is 100% true and we sincerely hope you will call us if you are considering selling your home now or in the future.
Because homes are selling so quickly and prices are climbing, many buyers are making the assumption that they shouldn’t buy a home in this market due to that but that simply isn’t true. While home values are appreciating, homes are selling faster than ever and many sellers have multiple buyers competing for their homes, it is still a great time to buy a home. Why is this the time to buy? Think about the big picture. You aren’t just buying a home for today. It is most likely a long term investment and if that is the case, the mortgage rate is the most important factor when determining if you should buy a home now or later.
In recent weeks, mortgage rates have started to climb slightly but there are still extremely low and it will be quite some time before they rise significantly. Are you hoping prices may start to level off and drop some? While that is possible, the interest rate will have a greater impact on the overall cost of your home than the price you pay for it? If you aren’t sure, consider the example illustrated above. The same home today might cost you $400,000 with a interest rate around 3% and a monthly payment around $1,349. If prices drop in the next year or two, the same home might cost only $350,000 but with a mortgage rate of 5%, the monthly payment would be around $1,503 costing you more than $150 more per month than paying more for the same home with today’s ultra-low mortgage rates.
The most important thing to remember is that home purchases are very personal and your situation is what matters most. If you need to review your specific situation to determine what is best for you, give us a call anytime.
The Janis Penick Team
RE/MAX Bastrop Area
Serving Bastrop, Cedar Creek and Smithville
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The Janis Penick Team is your ultimate real estate resource for Bastrop, Cedar Creek and Smithville, TX.