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Moving? The Time Is NOW!

Wednesday, March 26, 2014   /   by Cristina Edelstein

Moving? The Time Is NOW!

Moving? The Time Is NOW!

 

A recent study revealed that the number of existing home owners planning to buy a home this year is about to increase dramatically. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.

 

There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.

 

Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 13.8% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $341,400. But, the $400,000 home would now be worth $455,200 (requiring a mortgage of $409,680).

 

Here is a table showing what additional monthly cost would be incurred by waiting:

 

Prices are projected to appreciate by over 4% and interest rates are also expected to rise by as much as another full percentage point. If your family plans to move-up to a nicer or bigger home this year, it may make sense to move now rather than later.

 

Call us today to set up a free consultation with one of our Real Estate Expert Advisors at 612-812-9262 or email us at office@kerbyandcristina.com

 

By KCM Blog

 

 

 

 

 

 

RE/MAX Results
Kerby Skurat
1143 South Shore Dr.
Plymouth, MN 55441
612-444-1110

The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Regional Multiple Listing Service of Minnesota, Inc. Real Estate listings held by brokerage firms other than Kerby Skurat - Re/Max Results / WINBACK are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.” Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items.” Copyright2021Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Data last updated October 16, 2021
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