The Cost of WaitingApril 16, 2020 by DRG
The “cost of waiting” is something we often find ourselves discussing with our clients at DRG. While this year may not be a typical spring, as experts in the Minneapolis condo and loft market, we can still see that now is a great time to get into a new home. With interest rates still low, and expected to rise, it’s wise to familiarize yourself with the “cost of waiting” before deciding to push back your home search.
What Does This Mean as a Buyer?
The “cost of waiting to buy” is defined as the additional funds necessary to buy a home if prices and interest rates were to increase over a period of time. For instance, if you’re looking for a new condo or loft in the $300,000 range, you may end up paying $131.79 more in monthly payments if you wait until Q4 of 2020. Freddie Mac forecasts that interest rates will rise to 3.8% by Q4 2020 and CoreLogic predicts that home prices will appreciate by 5.4% over the next 12 months.
If you’re ready, now is a great time to buy. Rates are still low, and you don’t want to wait until they climb back up before you start searching for your dream home.
When starting a home search, not only is it important to know the “cost of waiting,” it’s also crucial that you know what you can afford. Your mortgage payment does not only consist of the loan amount but will also include annual property taxes and/or homeowner’s insurance.
Connect with an Urban Realtor
Now is not the time to wait! Give us a call to schedule a no-obligation, one-on-one consultation today. Remember to visit our Ultimate Condo Guide to browse through a stunning selection of condo units in your favorite downtown neighborhoods.