A lot of conversations lately start off with “what if I wait a year to buy a home in Tooele County”?
Part of the reason for the question is that with inventory so tight out here home buyers are looking at 2 sides of the same coin.
Side one is selection driven from the standpoint that it’s becoming hard to find “the dream home”. These buyers are not on the fence because they can’t make a decision, they simply can’t find a home that really motivates them to move.
The second is more market driven. These folks are missing mortgage rates in the 3.5% range and are hoping they will reverse the current coarse and go back down.
Both of these scenarios were mentioned in a post that KCM put out a few days ago. I want to share it with you because it deals with both of these problems on more a national and industry level.
Then I have linked to some addition information that deals with the same subject. These articles were written by other professionals, and put their individual spin on things.
Finally, I will make my own comments to sort of wrap things up. I hope you find all of these efforts to answer the question of what if I wait a year to buy a home in Tooele County. ENJOY!
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Report, home prices will appreciate by 4.8% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
Bottom Line To Consider About Waiting
If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.
You might also enjoy reading…
What I Think Will Happen If You Wait To Buy A House In Tooele UT.
The only thing most people in the industry can agree on is that interest rates will continue to go up & that that will be the biggest contributor to what will happen to those that wait.
Here are my talking points.
- Mortgage rates will continue their upward trend.
- Higher rates mean higher monthly payments.
- Higher monthly mortgage rates impact what homes a buyer can qualify for.
- Home buyers may not be able to buy the house they wanted this year…….. next year.
- House buyers may not qualify to buy property in the location they fell in love with last year.
- Home prices will settle down, but monthly payments will still drive the train.
- The huge value advantage that homes in Tooele County enjoy over houses for sale in Salt Lake County will erode.
- A Salt Lake County home buyer will no longer be able to buy a comparable single family home in Tooele for considerably less money. (in many cases $20 to $30 K less).
I could go on and on I guess. But I think that would require a face to face.
When I started this post I was sort of luke warm and was not sure that the evidence to buy now was so compelling. I’ve changed my mind.
If you are on the fence, let’s talk about this. Give me a call. Berna Sloan 435-840-5029.
Let’s talk answer your question about what if I wait a year to buy a home in Tooele County.?