What is the cost of waiting a year to buy real estate in Austin, Texas?
Is the thought of purchasing a home this year giving you anxiety? Should you buy now . . ., or wait until next year?
What difference can a year make? If you are questioning if now is the time to invest in Austin's booming real estate market, KSA says go for it. Freddie Mac, BankRate, and risk manager CoreLogic have put together some statistics to make things easier for you to understand.
The "cost of waiting to buy" is defined as the additional funds necessary to buy a home if prices and interest rates were to increase over a period of time.
In just one year, the numbers are pretty staggering. Freddie Mac projects mortgage rates will increase to 4.5% over the next 12 months. CoreLogic predicts home prices will appreciate by 4.8% over the next 12 months. If rates modestly increase from 4.3 to 4.5 percent over the next year for a home priced at $250,000, the difference in what you will pay if you buy now verses buying next year at this time, is a surprising $1,072.28 annually. To put that number into perspective, with a 30 year fixed mortgage, you will have paid an extra $32,198 for your home.
The extra $89.44 a month you will pay next year may not seem like much to you now, but when you are 60 years old and looking forward to retirement, $30,000 is a big deal.
