why you should buy real estate now! november, 2013
DESCRIPTION
With interest rates increasing and home values appreciating, home buyers should not wait until spring 2014 to purchase real estate.TRANSCRIPT
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W H Y P U R C H A S I N G R E A L E S T A T E T O D A Y M A K E S S E N S E
THOSE WHO CAN BUY,
SHOULD BUY NOW
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WE ARE NEAR THE LOWEST HOME LOAN RATES IN THE LAST 40 YEARS
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WHILE THEY’VE RECENTLY CREPT UP, THEY’RE STILL WELL BELOW 5%…
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BUT RATES ARE PROJECTED TO RISE OVER THE NEXT 12 MONTHS
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DURING THE RECESSION, THERE WAS A FLOOD OF HOMES ON THE MARKET, BUT INVENTORY HAS
DROPPED DRAMATICALLY
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INVENTORY HAS DECLINED BOTH NATIONALLY AND IN CHICAGO
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THIS HOME SUPPLY IMPACTS THE SELLING PRICE
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DURING THE RECESSION, OVERSUPPLY CAUSED VALUES TO DROP ABOUT 6%, BUT FOR THE LAST YEAR, PRICES HAVE BEEN RISING
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LOCALLY, PRICES HAVE ALSO RISEN
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INDUSTRY EXPERTS ANTICIPATE HOME VALUES WILL CONTINUE TO RISE
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100 INDUSTRY EXPERTS DISAGREE ON THE RANGE, BUT ALL AGREE ON DIRECTION OF HOME PRICES
OVER THE NEXT 5 YEARS
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WHAT DOES THIS MEAN FOR YOU?WAITING FOR HIGHER PRICES/RATES MEANS
HIGHER MONTHLY PAYMENTS
2013 2014 2015 2016 2017Example
Loan Amount $300,000 $310,500* $321,367* $332,615* $344,257*
Interest Rate Monthly Payment
4.25 $1,476 $1,527 $1,581 $1,636 $1,694
4.5 $1,520 $1,573 $1,628 $1,685 $1,744
4.75 $1,565 $1,620 $1,676 $1,735 $1,796
5 $1,610 $1,667 $1,725 $1,786 $1,848
5.25 $1,657 $1,715 $1,775 $1,837 $1,901
The $330,000 purchase in 2013 would be worth $ 378,682 in 2017 if real estate increases only 3.5% per year
Payments on that home would be $425 HIGHER per month by buying now vs. 5 years from now if prices increase 3.5%/year and rates increase by 1 %.
That’s a difference of $ 25,500 over 5 years (60 monthly payments!) * 3.5% increase per year
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EVEN IF VALUES AND RATES RISE ONLY HALF AS MUCH AS EXPERTS PREDICT…
DOESN’T IT MAKE SENSE TO BUY NOW?
For more information about how buying today
makes sense for your situation, call
Anne Rossley, CRB, CRS, RSPS, SRES
Baird & Warner
773.620.5333
Email: [email protected]: http://AnneRossley.com