It’s no secret that home values are at historical highs, prompting both casual homeowners and real estate investors alike to take advantage of this opportunity to get the most out of this seller’s market.

The question is that now that your home is sold, is buying a new property the next best move? We say YES and here are two solid reasons why:

HOME VALUES ALWAYS GO UP IN THE LONG RUN

The above graph plots the median home values of several Southern California counties since the mid-1990’s. Despite some fluctuations due to market conditions, the rule of thumb that homes approximately double in value every ten years still holds steady. Feel free to contact us on our direct line at (714) 203-1669 or send an email to office@UltimatePropertiesSold.com directly regarding your specific area!

We’ve recently experienced record-setting home value growth and while that growth is expected to taper off, it is expected to return to traditional growth rates rather than crash like what we experienced in the late 2000’s.

INTEREST RATES ARE STILL REMAINING INCREDIBLY LOW, FOR NOW

Mortgage rates are still hovering below the 3% mark, making financing incredibly cheap, however the federal reserve is now projected to raise rates at least twice by the end of 2023- a necessary move to counter the effects of inflation.

Let’s say you’re looking at a $550,000 condo today, and even considering an offer of $10,000 over list to ensure the sale- making it a $560,000 condo. Assuming 20% down and excellent credit, you’d be borrowing $448,000 at around 2.8% for a 30-year note. This puts your monthly payment around $1,841 with $214,691 in interest paid over the life of the loan.

Alternatively, you might be tempted to hold off a year or so to wait for the bidding wars to relax. In that time, however, interest rates are likely to go up. Let’s assume your lower offer of $550,000 is then accepted and with 20% down, but a higher interest rate of 4%, your monthly payment would then be in the neighborhood of $2,101 with a total of $316,226 paid in interest.

Buying today, even at a $10,000 premium, can ultimately save $260 per month on mortgage payments and over $100,000 in interest paid over the life of the loan simply by taking advantage of today’s lower interest rates. These numbers, of course,  are for the purposes of this example. Always consult a financial professional prior to making investment decisions.

Don’t let the seller’s market scare you off from buying today! Interest rates are so low and homes are projected to continue appreciating. In fact, paying a bit more now will actually save you buckets of money by locking in a low-low mortgage rate today!

With over 35 years in the home selling business, Ultimate Properties has successfully predicted many market trends and, right now, our recommendation is SELL! SELL! SELL! (And then BUY, BUY, BUY!!!)

WE CAN MAKE THE SALE OF YOUR CURRENT HOME 100% CONTINGENT ON YOU FINDING THE HOME OF YOUR DREAMS AND IF YOU DON’T FIND IT, YOU DON’T HAVE TO MOVE.

Let us streamline the process of maximizing the profits on your current home and get you into the home of your dreams! Our direct line is (714) 203-1669 or send an email to office@UltimatePropertiesSold.com.