Why Buyers Should Consider A Homes Cost Vs Price

Dated: 09/02/2017

Views: 59

The Cost of a Home vs. Price



Many Real Estate Market Experts often talk about the difference between a home’s COST and PRICE.   Sellers view this question differently than buyers as sellers are most concerned about ‘short term price’ and where home values are headed over the next few months.  Buyers on the other hand should not be concerned about price but instead about the ‘long term cost’ of the home.

Let us examine why.

A nationwide panel of over one hundred economists, real estate experts, investment & market strategists have recently projected that home values would appreciate by approximately 6% until the end of 2018.

The, Fannie Mae most recent August 2017 housing forecast report predicts that the 30 year fixed mortgage rate will be less than 4.2% by the end of next year.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

How higher mortgage rates affect home pricing





Bottom Line

There is no better time to buy a home when the interest rates are still at historic lows!  This is so true here in Vero Beach where there are still good real estate deals compared to some other parts in Florida.  Find out more about Vero Beach real estate deals, neighborhoods and communities here. 

Latest Blog Posts

Todays Ramble From Team Rambala Jan 10 2018

The Impact of Tight Inventory on the Housing MarketThe housing crisis is finally in the rearview mirror as the real estate market moves down the road to a complete recovery. Home values are up, home

Read More

Todays Ramble From Team Rambala Dec 11 2017

Why Getting Pre-Approved Should Be Your First StepIn many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale.

Read More

Todays Ramble From Team Rambala Nov 20 2017

Homeowners: Your House Must Be Sold TWICEIn today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home

Read More

Home Prices Have Gone Way Up Since 2008 But We Are Not In Another Housing Bubble

Home prices have increased significantly since the housing market bust we experienced across the country in 2008.  This is also true here in Vero Beach where we have also seen a big increase

Read More