The Cost of Waiting To Purchase A Home In Everett, WA (Demo)

As  a consumer, you can easily be confused with the national media reports on the real estate and mortgage markets.  What is the market doing? Are home values really going up? What about interest rates?

I don’t think that a simple suggestion from a bank or real estate agent saying, “The market is hot and it’s a great time to buy” is a good enough reason to make the largest financial decision of your life. I believe in addressing the “why” behind a statement like that. So, below I’ve presented some numbers for you to review that may help clarify “if” now is a good time to buy real estate.

Why is it a good time to buy real estate?

Here’s why:  Over the past 6-months, we’ve said, “good-bye” to interest rates in the 3% range.  Also in the last 6-months, home values have consistently increased, so the idea of “low-balling” a seller by $30,000 like people did during 2010 and 2011 are gone.

Each city, and more specifically, neighborhoods individually have conflicting appreciation rates, so for the sake of a conservative discussion, I’ve picked the city of Everett, WA as the subject.

Take a look at the chart that I made below, it clearly explains how interest rates and appreciation affect your “buying power”.


**Average appreciation rates through 2013 and into 2014 are projected to be around 5%-9%, so I’ve used 5% as my metric above.  Average home values were determined by the National Association of Realtors existing home sales report.

**For the sake of financing comparisons, I presumed a conventional 5% loan program, and only disclosed principle/interest for payment. Lastly, for interest rate projection, I took the average projections from the Mortgage Bankers Association, Fannie Mae and Freddie Mac.

If you would like more information on the home buying process and how to avoid the common mistakes home buyers make, feel free to  download a free copy of my Mortgage Concierge Packet . You’ll see that it is loaded with all of the information that you need to know to make a smart decisions as you prepare to purchase a home.

As always, I enjoy working with my readers, so please do not hesitate to contact me directly at (425) 350-7136 if you have any questions.

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