The COST of a Home: Last Year, This Year & Next Year

Hello Everyone This is Brad Hammarlund with Exit Homevets Realty in Killeen TX. I work with people looking to sale their homes and also with people who are looking for homes for sale in Killeen TX, homes for sale in Copperas Cove TX, homes for sale in Harker Heights TX.

 This is great article I came across on the KMC Blog. This basically shows the price of a house last year and what it would cost with the interest rates from last year. Then the price of the house due to appreciation for this year and the payment with current interest rates, and the projected cost of the house next year price increase due to appreciation and what the payment should be with the projected interest rate for next year.

The cost of a home is determined mainly by two components: price and mortgage rate. Today, we want to show how the monthly cost of purchasing a median priced home has changed over the last twelve months and how it might change over the next twelve months. For the first two examples, we will be using the National Association of Realtors’ (NAR) Existing Home Sales Report to establish median price and Freddie Mac’s Primary Mortgage Market Survey to establish mortgage rate. We also assumed a 20% down payment in all examples.

LAST YEAR

The median priced home in the country was selling for $187,800. The 30-year fixed mortgage rate was at 3.5%. Here is what it would cost to buy a home last year:

TODAY

The median priced home in the country is selling for $213,500. The 30-year fixed mortgage rate is at 4.5%. Here is what it would cost a purchaser to buy a home today:

The monthly cost increased by: $190.78!

NEXT YEAR

Projecting into the future in real estate can be rather tricky. To establish future pricing, we depended on the over 100 housing experts surveyed for the Home Price Expectation Survey who called for an approximate appreciation rate of 5% over the next twelve months. For the interest rate, we took the average of the projections from the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae. Here is what these experts project will be the approximate cost of a home a year from now:

The monthly cost will increase by about: $97.32!

Bottom Line

 
From a financial perspective, why wait if you are thinking about buying?

Homes for sale in the Killeen  Fort Hood Area: Brad Hammarlund, Realtor, with Exit Homevets Realty in Killeen TX, Our main service area is Nolanville TX, Harker Heights TX, Killeen TX, Copperas Cove TX, Kempner TX, and Lampasas TX. At Exit Homevets Realty We are Real Estate Expert Advisers And Marketing Innovators. I am here to assist you with all of your real estate needs. Feel free to call or text anytime: (254) 291-0630