Whether it is hesitation or procrastination due to uncertainty, it can cost buyers by having to pay more for both the house and the financing. This is one of those markets where most of the experts expect interest rates and prices will continue to rise through 2019.
The National Association of REALTORS? reports there is currently a 4.2-month supply of homes for sale which is close to the same as last year’s inventory. Normal inventory is considered to be a 6-month supply. In King County there is approximately a 1.7-month supply of homes.
If during the period you’re waiting to buy, the price of the home goes up by 5% and the mortgage rate (4.8%) increases by 1%, the payment on a $500,000 home with a 95% mortgage could be $434.27 more each and every month. Over a seven-year period, the delay to purchase would total close to $36,500.
To act decisively, you need good information; a confused mind will not generally make a decision. In today’s market, you need to know exactly what price home you can qualify for and you need to know what kind of home you can expect for that price.
You’ll want a housing and a mortgage professional you can trust to give you the information you need to make good decisions for yourself and your family. We’d like to be your real estate professional and can recommend a trusted mortgage professional.
To get a better idea about what it may cost you for a home in your price range, use the Cost of Waiting to Buy calculator. If you have any questions, call me at (206) 979-9632.