The COST of a Home: Last Year, This Year & Next Year

Are you being priced out? The market has improved and prices and interest rates are on the rise! Interest rates are still very good and housing affordability remains high. However it won’t stay this forever! Are you ready to make your move? If you would like to learn more let me know.

by THE KCM CREW 

by THE KCM CREW Same Price, Lesser CostThe cost of a home is determined mainly by two components: price and mortgage rate. Today, we want to show how the monthly cost of purchasing a median priced home has changed over the last twelve months and how it might change over the next twelve months. For the first two examples, we will be using theNational Association of Realtors’(NAR) Existing Home Sales Reportto establish median price andFreddie Mac’s Primary Mortgage Market Survey to establish mortgage rate. We also assumed a 20% down payment in all examples.

LAST YEAR

The median priced home in the country was selling for $187,800. The 30-year fixed mortgage rate was at 3.5%. Here is what it would cost to buy a home last year:

Last Year

TODAY

The median priced home in the country is selling for $213,500. The 30-year fixed mortgage rate is at 4.5%. Here is what it would cost a purchaser to buy a home today:

This Year

The monthly cost increased by: $190.78!

NEXT YEAR

Projecting into the future in real estate can be rather tricky. To establish future pricing, we depended on the over 100 housing experts surveyed for the Home Price Expectation Survey who called for an approximate appreciation rate of 5% over the next twelve months. For the interest rate, we took the average of the projections from theMortgage Bankers’ Association, Freddie Mac and Fannie Mae. Here is what these experts project will be the approximate cost of a home a year from now:

Next Year

The monthly cost will increase by about: $97.32!

Bottom Line

From a financial perspective, why wait if you are thinking about buying?

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This entry was posted in Banks, Boise, Boise Homes, Boise Real Estate, Business, Eagle, Economy, Fannie Mae, FHA, Finance, First Time Buyers, Fixed Rate Mortgage, Foreclosure, Foreclosure Crisis, Freddie Mac, Gen Y, Home, Homes in Boise, Homes in Idaho, Housing, Housing Recovery, HUD, Idaho, Meridian, Millenials, Money, mortgage, Mortgage, Mortgage Bankers, Mortgage Bankers Association, National Association of Realtors, News, Real Estate, Real Estate Professional, Realtors, Refinance, U.S. Home, U.S. House, U.S. Housing. Bookmark the permalink.

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