In the Reno-Sparks market at the end of November 2017 the median price was $355,000, up an amazing 15% over November 2016. So while the nation is looking at an average appreciation of 7% in Reno-Sparks we are up more than double that figure. Buyers are paying 15% more now than they did last year. The median price may continue it’s upward climb in 2018 depending on the availability of affordable housing and interest rates. If you are considering buying the in Reno-Sparks market getting your offer accepted in this competitive market requires experience. The Shocket Team has 14 year of experience helping buyers. Reno-SparksRealEstate.com
We recently shared that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has allowed many buyers to enter the market.
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
If buying a home is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.