Thinking about buying a new home but wondering what will happen if you wait for a better deal? Look at the map below:
Those are the increases in the average year-to-date sales prices for housing markets around the Triangle. As you can see, you're paying more this year than last.
To put it another way, if you had your eye on a $300,000 home last year, that same home could be priced at $306,600. In Chapel Hill that exact same house would be priced at $312,900. Across the Chatham County line you'd be looking at paying $323,700 and in Knightdale that home has skyrocketed to $351,600. Below is the increases on a $300,000 home in 2015:
Let's assume a $300,000 home would cost you about $1,356 per month with a 20% downpayment of $60,000.
Let's take a look at the best and worst cases if you've waited.
In Wake Forrest that $300,000 home now costs $306,600: That's $1,384 per month with $61,320 down. So not only are you paying $28 more per month (for 360 months or $10,080 over the next 30 years) but you're also bringing an additional $1,320 for your down payment. That year of waiting didn't simply cost the $6,600 increase in the sales price - it actually would wind up costing you $11,400 over the entire term of the loan.
If that's the best case, do you even want to see the worst? Heading to the south we come up on Knightdale where an explosion of home building has had average home prices soar 17.2%. That $300,000 home is now worth $351,600. That means with a 20% down payment of $70,320 you could expect to pay around $1,577 per month.
Over the course of 30 years, that's an additional $89,880.
That's the cost of waiting.
Of course, you might not have a choice - however you don't have to put 20% in as a downpayment. There are different loans for different folks. You can pay as little as 3.5% down on an FHA loan and veterans could qualify for a zero-down VA loan.
It might be in your best interest to buy now with a lower downpayment rather than waiting. Give me a call and we can crunch some numbers!