Why you should buy real estate now! November, 2013

W H Y P U R C H A S I N G R E A L E S T A T E T O D A Y M A K E S S E N S E

THOSE WHO CAN BUY,

SHOULD BUY NOW

WE ARE NEAR THE LOWEST HOME LOAN RATES IN THE LAST 40 YEARS

WHILE THEY’VE RECENTLY CREPT UP, THEY’RE STILL WELL BELOW 5%…

BUT RATES ARE PROJECTED TO RISE OVER THE NEXT 12 MONTHS

DURING THE RECESSION, THERE WAS A FLOOD OF HOMES ON THE MARKET, BUT INVENTORY HAS

DROPPED DRAMATICALLY

INVENTORY HAS DECLINED BOTH NATIONALLY AND IN CHICAGO

THIS HOME SUPPLY IMPACTS THE SELLING PRICE

DURING THE RECESSION, OVERSUPPLY CAUSED VALUES TO DROP ABOUT 6%, BUT FOR THE LAST YEAR, PRICES HAVE BEEN RISING

LOCALLY, PRICES HAVE ALSO RISEN

INDUSTRY EXPERTS ANTICIPATE HOME VALUES WILL CONTINUE TO RISE

100 INDUSTRY EXPERTS DISAGREE ON THE RANGE, BUT ALL AGREE ON DIRECTION OF HOME PRICES

OVER THE NEXT 5 YEARS

WHAT DOES THIS MEAN FOR YOU?WAITING FOR HIGHER PRICES/RATES MEANS

HIGHER MONTHLY PAYMENTS

2013 2014 2015 2016 2017Example

Loan Amount $300,000 $310,500* $321,367* $332,615* $344,257*

Interest Rate Monthly Payment

4.25 $1,476 $1,527 $1,581 $1,636 $1,694

4.5 $1,520 $1,573 $1,628 $1,685 $1,744

4.75 $1,565 $1,620 $1,676 $1,735 $1,796

5 $1,610 $1,667 $1,725 $1,786 $1,848

5.25 $1,657 $1,715 $1,775 $1,837 $1,901

The $330,000 purchase in 2013 would be worth $ 378,682 in 2017 if real estate increases only 3.5% per year

Payments on that home would be $425 HIGHER per month by buying now vs. 5 years from now if prices increase 3.5%/year and rates increase by 1 %.

That’s a difference of $ 25,500 over 5 years (60 monthly payments!) * 3.5% increase per year

EVEN IF VALUES AND RATES RISE ONLY HALF AS MUCH AS EXPERTS PREDICT…

DOESN’T IT MAKE SENSE TO BUY NOW?

For more information about how buying today

makes sense for your situation, call

Anne Rossley, CRB, CRS, RSPS, SRES

Baird & Warner

773.620.5333

Email: Anne@Rossley.comWebsite: http://AnneRossley.com