Charleston SC Homes: Costs Of Waiting
If you are deciding whether or not to buy Charleston SC homes for sale, here is some helpful information to show you why waiting to buy will end up costing you more money.
Based on projections by leading industry analysts, home prices and interest rates will both be on the rise in 2015. The graphs below show projected interest rates for 2015, as well as projected home value appreciation through 2018.
This information is important to understand, because it shows that buyers are in for a double whammy. With both interest rates and home prices increasing, it simply means that the cost of buying a home is only going up.
For those buyers that hold off, you will afford to buy less house next year. For some, this could price you out of the home you really want. And that is another cost to factor in–opportunity cost.
Take a look at the graphics below. They show what a house would cost today, at the current price and interest rate. Then, in order to keep the mortgage payment about the same, the graphics show how much house you lose.
I provided a couple different graphics at different price points to better illustrate this. Notice the gray boxes–these show keeping the same mortgage payment at increasing interest rates. You can then see just how much purchasing power you lose.
One thing the above graphs do not take into account is home values appreciating. The next graph takes both factors into account, and shows the difference between buying a $250,000 home today versus waiting a year to buy the same home
However, in the Charleston SC area, the market is performing better than the national average. In fact, according to the Charleston MLS, home values in Charleston SC have increased over 11% this last year.
Factor in a higher rate of appreciation, and you can really see how you can really miss out by waiting.
The rapid increase in home values in Charleston SC can be a good thing for buyers. This is a sign of a healthy real estate market, one that is on the rise.
By buying sooner than later, you can make that appreciation work for you, and not against you. That appreciation works for you when you own a home–you build equity and wealth. If you wait, then it works against you, as these graphs show.
Buying a home in Charleston SC can be a major decision, especially if it will be your first. Be sure to check out my website for helpful resources for buyers.
If you have any questions about Charleston SC homes, then don’t hesitate to contact me today!