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Buying a home in Utah

What would you do if you could lose $60,000 in the next year?

If you are thinking of buying a home next year, let me show you how waiting could cost you!

Two major factors are expected to change in the next year which would impact your home purchase: rising home prices, and rising interest rates.

Let’s look at some numbers: imagine you can qualify to buy a home this year for $300,000. If you put 5% down and buy out the mortgage insurance your payment could be close to $1600/month. Now imagine you want to wait to buy a home until next year. Will you be able to get the same house? If so what will the monthly payment be?

Factor #1 – Rising home prices

Economists predict that home prices will rise close to 5% in the next year. On a $300,000 home that’s a $15,000 jump in price. If you bought the home today, that’s increased value in a home you own, if you wait that’s extra money on the price tag of the home.

Factor #2 – Rising Interest rates

Rising Interest Rates

It is predicted by economists that interest rates could increasing to as high as 5.5% next year. That could increase your house payment on a $300,000 home $320 a month. Of course that is not guaranteed, but that’s a significant jump on your house payment.

Not only that, but if you barely qualify for a $300,000 home today, rising interest rates will change the price you can afford on a home. With these higher interest rates, next year you’ll only qualify for a $255,000 home with the same payment. And by the way, that $255,000 home you could buy next year is on the market today for $240,000.

If you wait to buy a home until next year:

  • the same house can cost you $320 extra each month (almost $4,000 a year)
  • the home you could have purchased today could cost 5% more ($15,000 on a $300K home)
  • the mortgage you can qualify for could be significantly reduced ($45,000)

Next year you will be getting less home for the same money!

Want to get the biggest bang for your buck?   Find out how to buy a home today!

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Utah Dave

15 years and over 1,500 homes sold! Dave Robison's passion is in making the buying and selling process better for everyone. As a result, "UtahDave" has been recognized as the #1 re-sale listing agent in South Jordan, Herriman, West Jordan, and Riverton areas. As a local native of South Jordan since 1978, Dave is deeply invested in the community. Dave's friends nicknamed him Utah Dave in high school because it didn't matter where they went in Utah, Dave knew how to get there and someone there. The name sticks today as UtahDave has formed a professional real estate network of Neighborhood Experts all across the state. Dave lives in South Jordan with his wife and 4 amazing children. He enjoys dancing (which is how he met his wife Dawn) as well as traveling, coaching, and learning. UtahDave is constantly serving the community, the local Realtor Association, the State association, and the National Association of Realtors. All his efforts are aimed at making our community a better place. 2007: Rated #4 Realtor in the State for number of existing residential homes sold by Enterprise Newspaper 2008–current: YPN BLOGGER 2008–current: UAR Prof Standards Committee 2009–current: NAR Federal Housing Policy Committee 2010 - Large Sales Team of the Year - Salt Lake Board of Director 2012 - Realtor of the Year Nominee 2013 - Broker of the Year Nominee 2013 – Salt Lake Board of Directors 2nd Vice President 2013 - current Utah Association of REALTORS Board of Directors 2014 - President Elect Salt Lake Board of REALTORS

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