I saw a similar chart floating around on IG this week and I decided to recreate using my client’s average purchase price and our local appreciation numbers since they’re higher than the national rates. My mind was blown!!! In just 4 months house prices have gone up over 9%. In the same period mortgage rates have gone up 3/10ths of a point. That may not sound like much but it translates into a big financial impact in just 4 months:

• You pay an extra $45,806 for the same house due to market appreciation
• You need an additional $4,580 for a down payment
• You pay an extra $259/month in your mortgage payment ($3,108 additional per year)
• You don’t gain the $45,806 increase in wealth through equity build-up

Then I thought: Holy smokes, we can assume that homes will appreciate another 9%+ in the next 8 months (probably more). Interest rates are also projected to go up another 3/10ths of a point. The numbers for holding off purchasing for full year make my stomach ache:

• You pay an extra $91,230 for the same house due to market appreciation
• You need an additional $9,123 for a down payment
• You pay an extra $508/month in your mortgage payment ($6,096 additional per year)
• You don’t gain the $91,230 increase in wealth through equity build-up

Yowza friends! I’m kicking myself for not investing in real estate in November and I bet you are too after reading this!

It is attainable to get a house right now… yes, inventory is low and competition is fierce, but the majority of my buyers are getting great houses they L-O-V-E with relative ease! Working with a market authority like myself who will help you craft a great offer and navigate the competitive landscape is key. 

Lindsay Fricks, Helping you, your family and friends Live & Love in Arizona!