March 3rd, 2011 8:46 PM by Jodie Ford
We’ve all heard the saying “Sell High, Buy Low” – and this is obviously great advice. The hard part is – knowing when the price has hit bottom……
Today we are seeing more evidence that the COST of a home in the Charleston AFB area, has in fact hit bottom. Unless you are an all cash buyer, you must take into consideration the expense of financing a property to determine the true cost of purchasing the home. Interest rates have increased over the last quarter; and the rise in rates has counteracted any fall in prices.
In November 2010, the interest rate was 4.17%. So a $200,000 Charleston AFB home would have cost you $974.54 per month (principle and interest).
According to the most recent report from Case Shiller, house prices fell 3.9% in the 4th quarter of 2010. The most recent report from the Federal Housing Finance Agency shows a 0.8% fall in prices. Let’s use the larger percentage decrease: 3.9%.
Today, let’s say the same house as above is now priced at $192,000 – but the interest rate is now 4.95%. – SO your monthly payment will now be $1,067.54 (principle and interest).
By waiting to pay less for the PRICE of the house, the COST increased $93 a month. That adds up to $1,116 a year and over $33,000 over the life of the loan.
If you want to buy low, buy now. It appears COST has hit its lowest point.
**Information provided by the KCM Crew via www.KCMblog.com**
Torri JacobsenBuying or selling a home doesn’t have to be hard, but choosing the right Realtor DOES make a difference. I specialize in making first-time home buying a great experience for military families moving to the Charleston, SC area. Call or email today, and let’s make this your best move yet! You’ll feel right at home with me.
Jodie Hurt I specialize in helping military families enjoy a smooth PCS in and out of Charleston. I have a passion for helping people, and I love what I do. Call or email today and let me make this the easiest PCS yet!
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