It is a fact, in certain cities price ranges in Hampton Roads conditions favor the Seller. However, the "cost" of a loan heavily favors the Buyer. The best homes, in top condition, often do not make it through the first weekend on the market before being snatched up. Be looking for our follow up on how these factors affect Buyer's and Seller's in Virginia Beach and Chesapeake as well as other Hampton Roads Cities.
The inaugural Opportunity Cost Report was released recently by realtor.com. The report explained that “with interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today's market have become very steep”.
The report estimates that, based on today's dollars, the average purchaser would accumulate $217,726 in increased wealth over a 30-year period.
(You can get the projected wealth increase for almost 100 metros here.)
What could this mean to someone sitting on the fence waiting to buy?
Experts believe that both home prices and mortgage interest rates will increase over the next twelve months. Obviously, if this does happen, the monthly cost of a home a year from now will be dramatically higher than it is today. The Opportunity Cost Report breaks down exactly how much a purchaser could lose over increments of one year and three years. Here are the results based on an average purchaser in the U.S. delaying their purchase:
If you are ready, willing and able to buy a home, waiting doesn't make sense.
Provided By Keeping Current Matters