We have often talked about the difference between COST and PRICE. As a seller, you will be most concerned about Ã¢â‚¬Ëœshort term priceÃ¢â‚¬â„¢ Ã¢â‚¬â€œ where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned about price but instead about the Ã¢â‚¬Ëœlong term costÃ¢â‚¬â„¢ of the home. Let us explain.Recently, weÃ‚Â reportedÃ‚Â that a nationwide panel of over one hundred economists, real estate experts and investment & market strategists projected that home values would appreciate by approximately 8% from now to the end of 2015.Additionally, Freddie MacÃ¢â‚¬â„¢s most recentÃ‚Â Economic Commentary & Projections TableÃ‚Â predicts that the 30 year fixed mortgage rate will be 5.7% by the end of next year.
WHAT DOESÃ‚Â THIS MEAN TO A BUYER?
Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today: