Moving Up? Do It Now Not Later

Courtesy of Keeping Current MattersA recent study revealed that the number of existing home owners planning to buy a home this year is waterfront_luxury_homes_naples_floridaabout to increase dramatically. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 13.8% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $341,400. But, the $400,000 home would now be worth $455,200 (requiring a mortgage of $409,680).Here is a table showing what additional monthly cost would be incurred by waiting:Move-Up-Cost-of-Waiting-2

Prices are projected to appreciate by over 4% and interest rates are also expected to rise by as much as another full percentage point. If your family plans to move-up to a nicer or bigger home this year, it may make sense to move now rather than later.

Remember if you are considering waiting another year for the price of your home to increase, the larger home you are dreaming of will increase at the same rate.  There is no way you can keep up with percentage increase.

Call me now at 239-601-3174 so we can discuss how much your home is worth in today’s market and we can best leverage your equity to get you and your family into your new home this year!  It has been an extremely busy season here in Naples Florida but I believe the summer will be just as busy as the buyers return to our beautiful city to make their decisions and purchase their homes ready for the cold winter of 2015.  You can sell your home to one of these buyers and move up to the home you have been waiting for.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a new home!

 

 

 

 

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