There’s a shift happening in both our San Diego County market and the national market, and because of this, many buyers are thinking they should wait until the market corrects itself to purchase a home.
I don’t think this is the right move, and I’ll explain why by using conservative market numbers to illustrate the difference between buying today and buying one year from now.
In that time, market prices are predicted to increase from 3.1% to 5.5%. Interest rates are also predicted to increase from 1% to 1.5%. Since today’s average rate for a 30-year fixed loan is 4.62%, they’ll reach at least 5.62% by the end of 2019.
Here in San Diego County, our median home price is $596,500, which means that the home you’re searching for today will be worth $18,500 more in 2019. When you combine that with an additional estimated $211,000 in interest paid for the life of a 30-year fixed loan for just that 1% increase in the adjusted interest rate, the price of waiting that long is costly at best.
Again, keep in mind that these are conservative estimates—$230,000 is a heavy price to pay to just wait and see what the market will do. This is why now is the time to take an honest look at your situation, break down the numbers, and see if you can structure a home purchase sooner rather than later.
I would love to help guide you through this process, so if you’re interested in getting started, don’t hesitate to give me a call.
If you have any other real estate questions, feel free to reach out to me as well. I’d love to help you.