Gulf Gate Estates has its own loyal segment of qualified potential home buyers—its tenants. As a Realtor® and homeowner in Gulf Gate, I am often asked to predict the future of this swelling market for consumers whose price range is somewhere around $250,000. This is especially true during open houses.
Many of the residents who make Gulf Gate such an amazing place to live are riding out an unprecedented 78-month year-over-year rise in home prices that despite historically low interest rates have priced them out of their desired neighborhood.
These hopefuls diligently watch the Gulf Gate housing market, go to every open house, and keep up with local market conditions. I get the impression folks who want to buy in Gulf Gate have a difficult time justifying its climbing prices. I see Gulf Gate's location and the sophisticated improvements we are seeing as hot enough to create the kind of demand that commands a cool half-million for a 3/2/2 with a pool.
The Burning Question
Consumer: "Should I wait for prices to drop before buying a house in Gulf Gate?"
Magic 8-Ball: "My sources say no."
The Two Perspectives
As the seller, focus will be on the 'short-term price’—trending home values over the next six months.
As the buyer, price will be less important to the purchase than the 'long-term costs' associated with monthly principal and interest (P&I) payments.
The 2019 Predictions
CoreLogic's most recent Home Price Index report predicts home prices will appreciate by 5.1 percent on a year-over-year basis from June 2018-19. Likewise, Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae judge interest rates will rise in 2019.
What does this mean to the buyer who is on the fence?
This demonstration calculates the financial impact these predictions would have on a $250,000 mortgage, beginning with today's 4.72% mortgage rate obtained from the Freddie Mac Primary Mortgage Market Survey® (PMMS®) and CoreLogic's 5.1% appreciation estimate.
The resulting financial impact on a $250,000 mortgage reveals a $175-per-month jump in housing costs. Significantly, the potential home buyer who decides to rent for another year forfeits appreciation estimated at $12,750. Waiting a year to purchase your home could cost $75,600 over the life of a $250,000 mortgage loan and another $12,750 in lost equity, and I bet you can think of a couple more financial gains over renting. So don't wait to go Gulf Gate is what I say.
I think the next time I'm asked that question, I'll respond: "If you're planning to buy a home in Gulf Gate in the next year, doing it sooner rather than later could save you thousands.
Please call today for information on buying or selling. My cell number is (941) 549-4010 or visit CallForestFirst.com.
Forest Balderson, Realtor®, GRI
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