Wednesday, July 22, 2015

Should I Wait to Buy a Home on Chicago's North Shore?

There are many questions facing today's North Shore homebuyers— when to begin looking for a home, how many bedrooms, square footage, neighborhood and location. But despite the increased traffic this summer, some buyers are still finding themselves asking if they should wait to purchase a home.

It may seem wise to "wait out" the real estate market, especially given the ever-changing mortgage rates, but this year, that is just not the case. Waiting to buy a home in Northbrook, Glencoe, Winnetka, Highland Park or Deerfield will cost you significantly more next year than if you made the home purchase right now!

Consider this example, for instance. With mortgage rates are currently hovering around 4 percent and a home with a purchase price of $250,000— your monthly principal and interest will total around $1,100, given you put the standard 20 percent down.

Using the same scenario, next year, when home prices are expected to appreciate by 5 percent means that that same North Shore home will now cost $263,000. In addition, mortgage rates are also projected to rise which would put your monthly principal and interest at $1,400 instead of the $1,100 it would cost this year!

Waiting to buy a home on the North Shore could cost you an extra $300 per month or think of it this way— $2,600 in added costs per year, when factoring in a 5 percent mortgage rate.

Those extra costs may not seem like much to you in the big picture, but you can also break them down in the following:

  • Your daily coffee run every morning ($2 per day) and buying lunch every day ($10)
  • Eating dinner out once every weekend ($50, 4 nights per month)
  • Buying a new car (monthly payment of $300)
  • That home renovation project you've always wanted to do ($2000)
  • Your annual family vacation ($2000)

Homeownership is one of the best investments you can make this year and as your North Shore real estate expert, I am here to help! Let me guide you through these smart homebuying decisions and at this time next year, you will be glad you're settled into your dream home!

I look forward to hearing from you!

Janie Bress
Your North Shore Real Estate Expert

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