Real Estate Watch AUGUST 2013
Lisa Van Dootingh Licensed in OH & MI Quality Service Commitment Integrity
Can You Afford to Wait to Buy a Home? There is a time and a place to wait to buy a home. If your credit isn’t what it should be, if you owe more money than you should, or if your job situation is tenuous, then you should probably wait.
at its lowest point in years, interest rates are on the rise, and home prices starting to climb as well.
If you are waiting until the perfect deal comes along or until you have a little more money saved, you may want to rethink that strategy because your decision may wind up costing you thousands in the long run.
The day of finding a steal is long gone. Prices are on the rise in our area at around 10% per year. If you find the home of your dreams, be prepared to pay at least full price because if you don’t there will be another buyer willing to do just that. But look at it this way, because of the rate at which home prices are going up, today’s full price home is tomorrow’s bargain price.
The reasons for this are threefold: our current housing inventory is
Interest rates are on their way up which will dramatically decrease
S E RV IC E
Making Homeownership Possible
the average buyer’s purchasing power. The average rate on a 30year-fixed mortgage rose from a monthly average of 3.68% in the
first week of January to an average of 4.68% in the week ending June 28, according to mortgage-data website HSH.
Lisa Van Dootingh 419-902-7184 email@example.com www.lvdsold.com
Can You Afford to Wait to Buy a Home? Rates took their biggest weekly jump since 1987 in the last week of June, according to Freddie Mac. "Every tenth of a point that rates go up makes buying more expensive," says Jed Kolko, Trulia's chief economist. "It will almost certainly be more expensive to buy six months, a year or even two years from now." To make all of these statistics a little more real, let’s say for example, you want to purchase a $200,000 home. But, you’re not sure if this is the right time and you decide to wait for one year. However, one year from now the price on the home you are considering may have gone up by 10% (at our current average rate of appreciation). Now your cost is $220,000.
In addition to the cost of the home going up, experts predict that the interest rates will continue to go up as well. For every 1% increase in the rate, your payment goes up .80 per $1000 borrowed. In one year that $200,000 home (assuming you have 10% down) will now cost an additional $160 per month for every percent that the interest rate goes up. That’s almost $2000 per year! (And that’s assuming the interest rate only increased by 1 percent). If you’ve been waiting for the perfect time to buy, now is that time. Waiting until next year will just cost more.
"This is a once-in-ageneration opportunity to buy real estate. I emphasize that double bold and underline," Leslie Appleton-Young, chief economist for the California Association
Parmesan Zucchini Ingredients: * 4 medium fresh zucchini, sliced in half * 1/2 c fresh Parmesan cheese, grated * 1-2 tablespoons fresh rosemary and thyme, minced * smidge of olive oil * salt and pepper to taste Directions: Pre-heat oven to 350F, lightly brush both sides of the zucchini with olive oil and place on foil-lined baking sheet. Mix cheese and herbs together in a small bowl and sprinkle over the zucchini along with salt and pepper to taste. Bake for 15 minutes and place under the broiler for the last 3-5 minutes until cheese is crispy and browned.