Are You Seriously Still Waiting?

Over the last 2 – 3 years, it’s interesting to look at the numbers considering the fact that many people are waiting to buy a house. As I’ve said many times recently: I get it, houses are expensive and house payments are high.

But I’m thinking about people who are actually ready to buy a home and they are just waiting because they want to get in at the right time. Thanks to this “Cost of Waiting” chart that I show in the video, we can see the numbers comparing buying today vs. buying in 1 year. The numbers assume market appreciation based on the average expected number in Temecula, which is assumed to be 4.91% over the next year.

In these calculations, I put in an $800,000 purchase price as if you were buying the home today. The results are clear: the overall benefit of buying now instead of in a year is an increase of over $30,000!

What If Interest Rates Drop?

The comparison assumes that rates over the next year will drop by 1%. If the appreciation goes up by almost 5%, we can still factor in the cost of a refinance and you are still ahead.

If anything, I think these numbers are a bit on the conservative side. If we looked at the data over the last two years, then I’m sure that the numbers would be even higher.

I like to point this stuff out so that you can see what is happening in the market. Again, I understand that if you can’t find a house that is going to make any sense for you, then I understand why you are waiting. That being said, I don’t know when it’s going to get cheaper. Unless you are expecting a big raise, you might want to lower your expectations or see if you can think about stretching a little bit more in your budget.

Let’s Talk About Your Situation

I don’t want to keep anyone up at night with their house payment. But it doesn’t seem like the right thing to do to assume that prices are going to drop.

This report is showing that even if rates come down, you are still going to be ahead. Think about the fact that you could gain nearly $33,000 in equity in one year! The numbers are what really matter – everything else is just pure emotion.

If you want to look at how the numbers apply to your personal situation, then reach out anytime. I’m always here to help!