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Waiting to Buy a Home in Raleigh Could Cost You

Are you a renter with a want to become a homeowner, or a homeowner who knows your current house no longer fits  the needs of your family, you may be hoping that waiting a year might mean better market conditions to purchase your first home or to upgrade. Is waiting the proper strategy?  To determine if waiting to buy a home in a year or if you should buy a home now, you have to ask and answer these 2 simple questions based on facts: #1 What will home prices look like in 2022? & #2 What will mortgage rate look like in 2022?

the breakdown on what home prices will look like in 2022

Fannie Mae, Freddie Mac & the Mortgage Bankers Association (MBA) all project continued home appreciation for 2022.  Fannie Mae has forecasted 5.1% for home appreciation in 2022; Freddie Mac is predicting 5.3%; The MBA has put an aggressive estimate of 8.3% for 2022. The average of these 3 housing industry entities is 6.27% for the 2022 home price appreciation – what does this mean? 

Raleigh, NC is located in Wake County and the median home price is $372,510 today. Using the average forecasted 2022 appreciation of 6.27% simply means that median priced home today which is priced at $372,510 would cost $395,866 in 2022. The cost of waiting can be calculated.  Delaying the purchase of home for a year in Raleigh, NC would cost $23,356 more because of waiting.

NOTE: real estate is hyper local and the predications for Wake County for the next year is 7.66%. The $372,510 median priced home in Raleigh today, based on the estimates, would be worth $401,043 (e.g. $28,533 1-year increase).

the breakdown on what mortgage rates will look like in 2022

The 30-year fixed mortgage rate is hovering at near epic lows. Most experts believe the current mortgage rate environment will not last much longer and home loan rates will rise as the economy continues to prosper. If you look at the average predictions from Fannie Mae, Freddie Mac and the MBA, a 3.7% interest rates is predicted by the Q4 of 2022. This is materially higher than the current rate environment. Any increase in mortgage rates will increase your costs monthly and over the life of the loan.

the bottom line

If the experts are correct, the end result is if you wait to buy in 2022 you will be paying more for the home and you will be paying more each and every month and more over the life of the loan too! In addition, you will be losing the equity appreciation between now and then!  

When asking yourself, should I buy now or should I wait a year and the math is done, it is clear, that taking action now is much more advantageous than waiting.

NOTE: it should always be loan first & then go find your home.  There is never a substitute to have price and cost clarity with certainty before you start search and fall in love with a place to call home.  If you want or need trusted advice with a frictionless digital mortgage process that provides certainty, give the Martini Group at Cardinal Financial Company at call: (919) 238-4934

Kevin Martini

NMLS 143962 | Certified Mortgage Advisor and Branch Manager | Martini Group at Cardinal Financial Company, Limited Partnership, NMLS 66247 | 507 N Blount St Raleigh, NC 27604 | (919) 238-4934 | | | Equal Housing Opportunity

Logan Martini

NMLS 1591485 | Senior Mortgage Strategist | Martini Group at Cardinal Financial Company, Limited Partnership, NMLS 66247 | 507 N Blount St Raleigh, NC 27604 | (919) 238-4934 | | | Equal Housing Opportunity

Kevin Martini

Kevin Martini is the founder of the Martini Mortgage Group; Branch Manager and Senior Mortgage Strategist with Cardinal Financial Company; a husband to a magnificent lady who was his high school sweetheart; a father of 2 amazing men; a son to tremendous parents; a grandfather to beautiful grandchildren; a loyal friend; a trusted and experienced advisor to the families he serves.

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