Fence Sitter, noun
A person who remains neutral or undecided.
Can’t decide if now is the right time to buy or trade up?
Here are some interesting statistics to consider as you weigh your options.
The 2015 sales in the valley showed an increase in prices, but the recent action by the Fed with an increase in interest rates may be the more important detail to watch.
If you’re thinking prices will decline; here’s a quick chart that demonstrates the difference between a 10% decline in prices vs an 1/2% increase in home mortgage interest rates, and the impact on a monthly mortgage payment.
Example
If we’re conservative and say prices simply stay the same; that $500,00 home now with a mortgage interest rate 1/2 % higher, the monthly payment goes up $117.
Which do you think will happen first? A 10% decline in prices or a 1/2 % increase in interest rates?
Based on the statistics; we think prices will continue on their upward trend-line and interest rates will increase at least 1 more time in 2016.
2015 Desert home prices increased across the valley and continue to press upward. The low interest rate environment is likely to change again in coming months making now a good time to act.