Waiting to buy a home can cost you tons of equity in the long run.
Have you ever thought about how there might be some big costs to waiting to buy a home? Some potential buyers may be hesitant to jump in because they’re currently renting or waiting for interest rates to drop. However, we’re here to explain why waiting can be more expensive than buying now.
The main reason for this is our low inventory levels. Currently, our market only has a two-month supply of homes, while a balanced market should have four to five months’ worth of inventory. This means that if no new homes are listed for two months, there won’t be enough homes for sale to meet the demand from buyers.
“You have options to help you buy now.”
The second reason is that we expect sales prices to continue increasing over th next few months and into next year due to the low inventory. In fact, homes should be 8% more expensive next year. Even if interest rates are lower next year, the increased purchase price would make it more expensive to wait.
The third reason waiting can cost you more money is that our partner lenders are currently offering an excellent lending solution. Although interest rates are historically low, some people are still hesitant to buy because they’re worried about rates rising. However, our lenders are offering a 2-1 buydown with a free refinance before year three. This significantly reduces your monthly mortgage payment for the first two years and allows you to take advantage of lower rates later.
Waiting to buy a home can be more expensive than buying now due to low inventory, increasing sales prices, and the availability of a great lending solution. Please feel free to call or email us with any questions. We look forward to hearing from you.
