from: http://www.reallynicehomes.com/blog/should-you-buy-house-now-or-later-year/
Q: My wife and I are having a discussion. She says we should buy a house now and I really think that we should wait for later on the year to buy and see if prices get cheaper... Who is right? Do you think prices will come down?
A: A great question to ask and congratulations my friend...you have a very smart wife!
Aside the fact that the decision to buy a home should be timed based on your needs and not the market, let me give you an explanation of what we are expecting on prices this year.
A recent post from Keepingcurrentmatters.com indicated the cost vs price difference in housing for 2015 to be higher at the last quarter of 2015.
This is a little hard to understand from a buyers point of view, specially if you are not a regular follower of real estate market statistics...
But here's a brief explanation what this means for you:
Should I buy a house in the first quarter of 2015?
or
Should I buy a house in the last quarter of 2015?
A nationwide panel of real estate experts, including economists and investment market strategists have predicted that home values will appreciate for at least 4% by the end of the year
Additionally as they look at mortgage rate form Freddie Mac most recent commentary and projections, there is a consensus that interest rates will appreciate to 4.5 by the end of 2015
What is the bottom line if you buy now or wait until the end of the year?
This is a demonstration of what is your bottom line if you wait to buy now in dollar amounts
Taking as an example buying a typical $250,000 home today.
Easy to understand.
If the economists are right, for a $250,000 house, you will be paying $172.32 more per month. .
On a typical 30 year mortgage, you will end up paying a total of $62,035.20 more at the end of your loan.
Now the question comes again..
Should I buy a house in the first quarter of 2015?
or
Should I buy a house in the last quarter of 2015?
The answer is YES if you want to save around $60,000 in the next few years...
And you should buy your wife a diamond ring. ..for saving you all this money!
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