This question, should I buy or wait to buy a house in Tooele Utah this year is the one I get asked the most. Almost daily. You would probably think I would automatically and immediately say yes. Real Estate is my life. As a career it has been good to me. It helped me raise 5 kids out here in Tooele ,and a big part of why Chris and I can continue to be active participants in the grand-kids lives. But it’s not that simple.
When the right time for YOU to buy a house depends on so many variables that i’ve decided the best thing I can do for my friends is get them the numbers, outline the possibilities and then be there to answer any real estate related questions that might come up.
I do that through this blog, providing info on a daily basis that may help my readers wrestle with various challenges as they weigh all options.
A good partner I have that helps me do that is a group called “Keeping Current Matters”. They publish some dynamite graphics that seems to always capture the essence of whatever point we are making.
Here is one I really liked. I hope it is helpful.
- The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
- Freddie Mac predicts interest rates to rise to 4.4% by next year.
- CoreLogic predicts home prices to appreciate by 5.0% over the next 12 months.
- If you are ready and willing to buy your dream home, find out if you are able to!
To Buy or Not To Buy
Let me put some meat on the bones of what KCM is saying.
- Re/cost of waiting: In the graph, KCM mentions the possible need for additional funds but did not mention that Tooele County may not qualify for the USDA rural loan program after this year. That loan offers qualified buyers 100% financing. If you are looking for leverage this could be a loss if Tooele looses qualification.
- The prediction of almost a half point increase may not look like much, but 2 things you should pay attention to. 1. The cost for life of the loan. 2. The home or location your income may allow you to buy.
- The 5.0% appreciation rate is a no brainer. On a Tooele house you buy for $200,000, @ that rate you will have a gain in equity of $10,000. Unless you are confident that you can SAVE about $800.00 a month while making payments to a landlord, I suggest you take a hard look at why you might need to start looking @ Tooele houses to buy.
So,,, there you have it. More pieces to the puzzle of should I buy or wait to buy a house in Tooele Utah.
If you have more questions, give me a call. Berna Sloan 435-840-5029. Chris or I will be happy to help.