Whether you are a first time or move-up buyer, there are two main factors that will impact the amount of house you can afford in your price range; home prices & mortgage interest rates.
Let's look at what the experts are predicting over the next twelve months in these two areas.
1.) Prices: Over 100 economists, real estate experts, investment & market strategists were recently polled as a part of the Home Price Expectation Survey. They projected the average home value appreciation over the next twelve-month period to be approximately 4.4%.
2.) Interest rates: Freddie Mac's recent report predicts the 30-year fixed mortgage interest rate will be 4.7% by this time next year. As of last week, the 30 year Freddie Mac interest rate was 3.69%.
What does this mean to you? Waiting to buy a year from now could cost a first-time buyer looking at a home priced at $250,000 an extra $204.00 per month and a move-up buyer looking at a home priced at $500,000, an extra $409.00 per month.
Bottom line, with both home prices and interest rates projected to increase, waiting to buy could put a dent in your family's wealth.
Thinking of buying a home in 2015? If so, there are many important factors to consider. I'd be happy to get you started in the right direction. If you have a home to sell contact me to schedule a FREE market analysis.
Author: Stephanie Danielson, Realtor, Broker/Owner
"If you are thinking of buying, selling, renting your home, or leasing real estate this year I'd love to hear from you! Working with an experienced professional can boost your profits!"
If you need assistance Selling or Buying Real Estate contact Stephanie Danielson: Direct: 612-242-8747 or Stephanie@ACGproperty.com
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Acuity Group Real Estate Professionals
564 Dodge Ave Suite A
Elk River MN 55330
Property Management and Residential Rentals, Listing & Buyer Specialists, golf course properties, water front properties, acreage & hobby farms, condos & townhomes, association maintained properties, senior housing, luxury homes, vacation & secondary housing, CDPE (Certified Distressed Property Expert), Short Sale Specialist and REO sales & Investment property.
Serving the following Minneapolis Cities & Suburbs: Elk River MN, Zimmerman MN, Big Lake MN, Rogers MN, Otsego MN, St. Michael MN, Albertville MN, Princeton MN, Ramsey MN, Anoka MN, Nowthen MN, Monticello MN, Oak Grove MN, Burns Township MN, Champlin MN, Dayton MN, Hassen Township MN, Coon Rapids MN, Blaine MN, Fridley MN, St. Francis MN, Livonia Township, Andover MN, Becker MN, Baldwin Township, Orrock Township, Plymouth MN, Maple Grove MN, Osseo MN.
Serving the following Minnesota Counties: Sherburne, Anoka, Wright, Hennepin and portions of Isanti County