Forecasts are strong that upward slope of home pricing will continue through next three years, returning most major markets to their 2005-06 price levels by 2016. The figure being published by market watcher Deutsche Bank is 21.5% increase over next three years! This is a national average – price increase in DFW market is expected to be more than 25%!
If you’re looking at a first-time purchase or looking to sell and move up, this means right now may be the best time to put those plans into action.
Why sell and move up now if prices will be higher for the home I’m selling if I wait?
Use a conservative 20% increase as an example, and assume you may currently have a home valued at $150,000 and a target dream home of $250,000. If you sell and move up now you are looking at a $100,000 increase. If you wait and both homes increase by 20% over the next few years, you will then be looking at selling the current home for $180,000, but the new home will cost $300,000 – a difference of $120,000 and a negative margin of an additional $20,000.
Given still very favorable mortgage rates which won’t last forever, the difference in waiting could mean a significant increase in monthly mortgage payments.
Read background article at Builder Online.