Home Prices Going UP, Interest Rates Going UP…It’s TIME to Buy Before It’s To Late!

Home Prices Going UP, Interest Rates Going UP…It’s TIME to Buy Before It’s To Late!

It's TIME to Buy A House!

 

Are you worried about being priced OUT of the real estate market? Well if you have been thinking about buying a new home but have been gun shy on pulling that trigger, you should definitely pay attention!  

The data is in and for 2015, there have been some substantial indicators that both prices of homes are going up AND interest rates will be going up as well.

So first, let’s talk home prices…

Here in San Diego, we are seeing healthy appreciation on homes…not too fast, not too slow, with an average of 4-5% annual appreciation. That means that if you wait another year, the house you want now will be priced higher and perhaps even be out of your affordability and qualification range. For example, a house priced for sale at $400,000 now, could go up to $420,000 by the end of the year, if not more.

And What About Interest Rates…

Interest rates are still at a historical low right now, with the average 30 year fixed interest rate being below 4% (which is lower than the past 30 years average!), however in the past months, we have seen an increase in rates. Experts are now predicting that by the end of this year, rates will be close to 5%. That would increase the mortgage payment on a $400,000 house by more than $237 a month!

Don’t Wait or It Might Be Too Late…

It’s important to look at all of your options when choosing to by a house, whether you are a first time homebuyer, a move-up buyer or a move-down/empty nest buyer.  The sooner you know your options, the sooner you can make an informed decision on how buying now vs. buying later will effect you and your family. If you would like to to explore all of your options, contact me now so we can create a customized plan that will work for you and your particular situation.

 Let’s Talk ~ Know Your Options