A Home’s Cost vs. Price Explained

We have often talked about the difference between COST and PRICE. As a seller, you will be most concerned about ‘short term price’ – 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 ‘long term cost’ of the home. Let us explain.

Recently, we reported 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 Mac’s most recent Economic Commentary & Projections Table predicts that the 30 year fixed mortgage rate will be 5.7% by the end of next year.

What Does 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:

If you are considering a home purchase or home sale, give us a call, text or email. We work with you through the entire process, from sale to sold!

​​-Steve and Sandra

206-769-9577
stevehill@windermere.com

BrennerHill.com
BrennerHillReviews.com

Posted on April 7, 2014 at 4:20 pm
Steve Hill | Category: Seattle Real Estate | Tagged , , , , , , , , , ,

Comments are closed.