The Cost of Waiting to Buy

Courtesy of Keeping Current Matters/The KCM Blog

Experts have projected that U.S. home prices will appreciate by approximately 5% in 2013. The Mortgage Bankers Association, Fannie Mae and the National Association of Realtors have all projected that the 30-year mortgage rate will be at least 4% by the end of 2013. 

Experts have projected that U.S. home prices will appreciate by 5.4% in 2013. If we assume that prices will rise about the same 5% over the next twelve months, here is the difference a buyer will pay if they wait a year.

Note that prices for the metro Phoenix area have gone up and are expected to continue to go up MUCH more than the national average.  According to a May 26th article in USA Today, "Phoenix median homes prices were up 19% year over year in March, CoreLogic says."  The charts below would be VERY different for metro Phoenix.

If we assume that prices and interest rates will rise as projected,
here is the monthly difference a buyer may pay if they wait a year.