Buying a home today is more affordable than it will be in a year
Times change, and like everything, the reason things result in change is due to the simple fact that related factors have shifted slightly, thus impacting everything and causing this said change. Much of the same can be seen in the field of real estate where values, risks, rewards, and more all are highly volatile depending on the month and the given year. Perhaps the most important rate of change to measure for the populace with regards to the real estate industry is the cost of a house.
Largely determined by the price and the mortgage rates, below we have highlighted just how much a median-priced home would cost you today, this time last year, and in a year from now for some valuable insight.
These figures are taken on a nationwide scale from the National Association of Realtors Existing Home Sales Report and Freddie Macs Primary Mortgage Market Survey, all while assuming a 20% down payment.
When discerning the interest rate, the average projections from Fannie Mae, the Mortgage Bankers Association, and Freddie Mac were all inputted into the equation. In the end, the following statistics were gathered:
Last Year
Today
Next Year
As in any market cycle, it is always difficult to predict the future. However, with respect to the real estate industry, one can take confidence in the recent signs which only depict a future market that will realize continued successes. In the recent Home Price Expectation Survey, over one hundred professionals were surveyed with the results pointing to the next year displaying a 5% appreciation rate in the industry. Concluding on the given numbers above, it seems like quite the wise decision to purchase real estate now before prices and interest rates climb any further across the country, wouldnt you agree?
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